President Trump decides to unveil a blueprint of tax cut on Wednesday showing a 15 percent business tax rate to corporations but also to companies’ now paying taxes through personal income tax code and this includes from mom-and-pop businesses to his own real estate empire.
The package is expected to hike the individual’s standard deduction, providing modest cut for middle-income people and abridging the process of filing tax returns, as people briefed its details. That proposal is opposed by real estate agents and home builders fearing it would reduce the importance of the mortgage interest deduction. Besides it may necessitate curbing or eliminating popular deductions, a risky pursuit.
With that decision, Mr. Trump agreed to pressure from retailers and conservative advocacy groups, but this move may deepen the challenge, where the swelling federal deficit may run high. His plan would increase taxes to limit the tax cuts impact on the budget deficit.
Republicans are ready to embrace the plan’s centerpiece that offers substantial tax reductions for all businesses. The 15 percent rate applies to corporations that now pays 35 percent, and to a broad range of firms including hedge funds, real estate concerns like Mr. Trump’s and large partnerships now paying taxes at individual rates, topping at 39.6 percent.
But Mr. Trump’s decision to facilitate the corporate tax cut to real estate conglomerates as his own will give Democrats a perfect line of attack.