Today analysts will have a busy day, thanks to an upcoming announcement by US President Donald Trump on his new tax bill. His administration has been working closely with members of the Republican party on a proposal for a new law regarding taxes, arguably one of the most important commitments Trump made during his presidential campaign.
As a political conservative and a businessman himself, Trump has spoken about tax cuts for the rich. According to inside information, the plan may suggest a corporate income tax of 20% and a 35% tax on top income (an almost 5% reduction from the current rate). Purportedly the plan will also increase the amount of income that remains untaxed for all Americans.
In Trump’s rhetoric, tax cuts are supposed to boost the economy by encouraging businesses. However, it is largely suspected that the plan will not provide concrete information on tackling the potential problems such policy changes might cause. The Democrats are also unlikely to support the bill.
Even though the proposal is still not public, many predict it would have a hard time surviving in Congress. After all, Trump’s single most important policy issue since he became President - healthcare - was a major fiasco, so many speculate that the same might befall his newest proposal.
