President Donald Trump on Tuesday revealed that the Republican tax reform plan will include a near doubling of the standard deduction for both individuals and families.
“We will cut taxes tremendously for the middle class,” Trump said at the White House. “That includes nearly doubling the standard deduction that most families take on their taxes and increasing the child tax credit.”
Within moments of Trump’s remarks, reports emerged that the Republican proposal will raise the standard individual deduction to $12,000 from its current rate of $6,350, and the deduction for a married couple to $24,000, up from $12,700.
Trump’s comments reflect a growing consensus between the White House and congressional negotiators about precisely what the GOP tax reform plan will entail. And not a moment too soon: both Trump and House Republican leaders plan to unveil what they call a “framework for tax reform” on Wednesday.
This framework will also reportedly include a major cut to the corporate tax rate, bringing it to 20 percent from 35 percent, as well as a reduction in the top individual rate, to 35 percent from its current 39.6 percent.
Rates in the lowest tax bracket, however, may actually increase, from 10 percent to 12 percent, according to a report Tuesday from Axios.
The White House and a spokeswoman for the House Ways and Means Committee did not respond to a request for comment on the Axios report, or a request to confirm the proposed standard deduction rates.
Trump met Tuesday with a bipartisan group of House Ways and Means Committee members. The tax-writing committee is currently drafting the House’s version of Trump’s promised tax reform bill.
“I look forward to working with the members of Congress gathered here today to pass the reform and the massive tax cuts that our country desperately needs to thrive, to grow, to prosper,” the president said. “If we do this, we will create millions of new jobs for our people and bring many, many businesses back to our shores. We will become a competitive nation again.”