After an unsuccessful attempt to pass a bill to change the health insurance system, Obamacare, introduced by the previous administration, the White house initiated the consideration of a new document — the act on tax reform. Now in the President’s plan — tax cuts for US citizens, the abolition of tariffs for the poor, increasing the duties on imports and higher taxes for foreign companies.
The population of the country, especially the “one-storey America”, the initiative supports, and the White House need to be rehabilitated in the eyes of the electorate after the failure of the law on health insurance. Experts believe that the authors of the reform will be difficult to find support in Congress, given that the financing of the new bill was expected due to the tangible cost savings inherent in the discarded draft Trumpcare.
According to the President of the United States, the country needs fundamental overhaul of the tax code and tariffs. The Minister of Finance Steven Mnuchin said that the reform project will be submitted to Congress soon.
The plans of the owner of the Oval office are to reduce taxes for the middle class and business. Donald Trump is going to lower the rate on income from 39% to 33%. There are tax initiatives of the Republican and items for the poor. For example, the intention to exempt from income tax U.S. citizens earning up to $29 thousand. a year.
The plan of tax reform is not bypassed corporate America. Donald Trump promised to abolish inheritance tax, against which objection traditionally middle-class and wealthy Americans.
The so-called corporate tax want to reduce up to 15%. We will remind that today it is 35% — one of the highest rates in the world.
In the plans of Donald Trump included reductions in the tax burden for the representatives of virtually all social strata of the country. At the same time, a Republican, which is, as he said in an interview with The Wall Street Journal, “economic nationalist” is going to raise taxes on imports, as well as the rates for foreign corporations operating in the territory of the United States. It is assumed that the White House will propose the introduction of fees of up to 20% on all imported U.S. products.
However, the main problem in the reform project of Donald Trump lies in the fact that the reduction of the tax burden will inevitably reduce revenues to the Federal budget. To recover costs expected due to the money saved on health care reform — by repeal, perhaps, the most expensive project in the modern history of the United States — Obamacare. But now, after the failure in this matter, the White House will have to find new sources of funding tax initiatives.
Experts believe that consideration of the bill will be very difficult — too many corporate interests intersect in the field of tariff policy.
— Many are against reforming the tax system. Here are interwoven the interests of businesses, corporations and many lobbyists. Trump promised to reduce taxes, and he will do everything to make this bill was passed. The part of the Republicans support a tax reform, Democrats against.
Chief researcher of the Institute of USA and Canada studies Sergei Vasiliev believes that to push through reform of the tax system will be even more difficult than the act to abolish Obamacare.
— The complete repeal of Obamacare would allow Donald Trump to save more than $40 billion from the funds would go to reform the tax system. However, this did not happen, and now the main question that is decided by the advisers of trump, where to get the money. The White House, especially after the failure with Obamacare, you need to show the result of the electorate.
While Donald Trump has time for a quick “legislative victories.” According to established political practice, usually a new administration is pursuing key initiatives in the Congress in the first months of the presidential term. Then begins the period of preparation of the interim congressional elections and parliamentarians are already occupied no bills, and his own campaign.
Image credit: https://www.whitehouse.gov/