Trump: New 10 Percent Middle-Income Tax Cut Plan Expected by November

A new tax cut plan for middle-income taxpayers is expected to surface by November, President Donald Trump has said. “We’re giving a middle-income tax reduction of about 10 percent,” Trump told reporters at the White House on October 22.

New Tax Cut

Trump first announced the new tax cut plan at a rally in Nevada on Saturday, October 20. “We’re looking at putting in a very major tax cut for middle-income people,” Trump told reporters over the weekend.

The new tax cut will focus exclusively on middle-income taxpayers and will “not be for businesses at all,” Trump reportedly said. As for when the new tax cut plan will be unveiled, Trump predicted it could occur before the midterm elections on November 6, according to several reports. However, Congress is not scheduled to be back in session until the week of November 12.

Vote Expected After Midterm Elections

Trump told reporters at the White House on October 22 that a vote on the new tax cut plan would occur after November 6. “We’ll do the vote after the election,” Trump said.

Looking Ahead

The potential for success of any new GOP tax cut bill is largely uncertain as Democrats gear up to try and take control of the House and Senate in November. There is “talk” on Capitol Hill that Republicans are expected to lose their House majority.

Not a single Democratic lawmaker voted for last year’s tax reform enacted under the Tax Cut and Jobs Act (TCJA) (P.L. 115-97). At this time, it appears unlikely that any new measure attempting to build upon the TCJA’s tax cuts would garner enough Democratic support.

In response to an October 22 inquiry regarding Trump’s announcement, House Ways and Means Committee Communications Director Rob Damschen told Wolters Kluwer that “there is continued interest in building on the success of the Tax Cuts and Jobs Act and constantly improving the tax code for hardworking families and America’s small businesses.” However, at press time on October 22, spokespersons for both House Speaker Paul Ryan, R-Wis., and House Ways and Means Committee Chairman Kevin Brady, R-Tex., were referring all questions on Trump’s new tax cut plan back to the White House.

By Jessica Jeane, Senior News Editor

Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.

Not a subscriber? Sign up for a free trial or contact us for a representative.



All stories by: CCHTaxGroup