On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.
This tax reform is all about cutting taxes for American businesses and wealthy citizens. Donald Trump promised to get the lost wealth and jobs back to America despite the fact that many American think they are gone forever. At the same time, the U.S. President didn’t’ clarified how to make up for those tax cuts to replenish the U.S. budget.
To be more specific, the text cut plan approved by the U.S. Congress is going to cut corporate taxes by 20% while wealthy Americans are expected to get their taxes cut by around 5%. All the way down to 35%. At the same time, some taxes are going to be canceled.
Donald trump thinks that this tax cut is going to spur business growth in the United States while supporting the American middle class. Even the Americans with the lowest income are going to get their taxes cut.
Experts say that the tax cuts are expected to be compensated at the expense of getting rid of some loopholes in the American tax legislation. The Republicans think that the tax reform is going to stimulate the national economy even though they back a tough fiscal policy to cut the federal budget deficit.
