The President intends to present the reform package until September 2020, writes Fox News.
The administration trump plans to propose yet another tax cut for the middle class before the November elections. The package may include a measure that would give large tax benefits based on retirement savings.
The administration is considering the idea of introducing the so-called USA accounts, which will unite together and simplify all existing retirement savings account that provides tax benefits (401 (k), IRA). However, there may be restrictions to the boundary of the annual amount of tax benefits for such accounts.
This idea is popular among legislators in Congress, but the final decision is still pending.
The idea of a universal retirement savings account proposed by Republicans in the past. They offered to tax themselves contributions, but to exempt from taxation the profit on such deposits. Thus, according to their idea, from the account the money will be easier to remove than with a traditional retirement savings account.
The administration of the trump is also considering the possibility of inclusion in a tax reform proposal that part of the income of the family was considered non-taxable if it invested in other retirement savings accounts, in addition to the traditional accounts 401 (k), which is now not taxed.
President trump said that he intends to go through another “very large” tax cut for the middle class, focused on more rapid economic growth in the United States.
As previously reported by FOX Business, Director of the National economic Council Larry Kudlow said that trump called him to publish the details of the reform by September — two months before the presidential election of 2020.
That may change
Politicians hope again to adjust the tax rate. The white house is considering the introduction of a uniform 15-percent tax rates for the middle class.
Currently, there are seven forks tax income with interest rates from 10 to 37 percent. At the time, how some middle class Americans may already pay 12-percent rate, others pay 22 or 24 per cent — this means that potential reduction of up to 15% rate will save them a lot of money.
In addition, the administration is committed to ensuring that some measures introduced by the tax reform in 2017, permanent. At the moment, some of them are only valid until 2025.
A senior administration official said FOX Business in September, among the items that the administration hopes to make permanent, there are lower rates of taxation of individuals, doubling the standard deduction and limiting the deduction of local taxes in the amount of 10 thousand dollars.
The law on tax cuts in 2017 has reduced the corporate tax rate to 21 percent from 35 percent. This rate cut is already permanent.
The reduction in payroll tax, however, is not provided in the list of tax priorities of the administration.
It is expected that the characteristics of the tax cuts will be outlined in anticipation of the election of 2020, as an indication of future economic agenda trump.
This proposal is likely to be brought against many of the pre-election plans of the Democrats, who require to increase taxes to Finance various social programs.
The previous tax reform — the Law on reduction of taxes — was signed by trump in 2017. This was one of the most significant changes to the tax code of the USA over the past decade.
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