Trump administration introduces massive tax reforms
NEW DELHI: The Trump administration (शासन प्रबंध) on Wednesday released a tax plan that proposes to sharply slash business taxes and steeply discount the rate on corporate profits brought back into the United States. The tax plan proposes(प्रस्तावित) cutting top income tax rate from 39.6 per cent to 35 per cent, and doubling the amount Americans can deduct (कटौती) from their tax returns.
Laying the ground for a 15 per cent corporate tax rate, treasury secretary Steven Mnuchin said the US will move to a territorial tax system aimed at providing relief to both small businesses and large corporations. The proposed corporate tax rate is a sharp drop from the existing 35 per cent.
The tax reforms also propose to repeal estate tax, the alternative minimum tax and providing tax relief for families with child and dependent care expenses.
A one-page summary of his proposals, released at a White House briefing, said Trump also wants to reduce the number of tax brackets to three from seven. Earlier, treasury (राजकोष) secretary Mnuchin called the plan "the biggest tax cut and the largest tax reform in the history of our country."
Under US law, only Congress can make major tax law changes. Lawmakers initially greeted Trump's plan as a starting point for further discussion on overhauling(पूरी मरम्मत) the tax code.