Trump’s Secretary of Treasury Steven Munchin announced the tax cut proposal Wednesday.President Trump on Wednesday unveiled a tax cut proposal that would cap the tax rate for corporations at 15 percent, as well as cap the rate for those who file their taxes through their owners’ personal income tax, such as owner-operator truckers, at 15 percent. The plan would remove the existing percentage brackets of 25, 28, 33 and 39.6 for personal income and the 35 percent rate for corporations.
It’s unclear how many single-truck owner-operator businesses would be affected by the tax cut, as many owner-operators already are in or below the 15 percent bracket.
Trump’s plan will likely face an uphill battle in Congress, though at least it could serve as a starting point for tax reform efforts. The White House and Congressional leadership have said tax reform is a key priority while Republicans control both chambers of Congress and the presidency.
Critics of the plan say it does not institute new mechanisms to make up for the loss of tax revenue for the federal government. Others have noted the plan would allow Trump to cut his own tax bill by millions of dollars because he files his taxes on his extensive business holdings through his personal income taxes.
Trump says the plan accounts for revenue losses by eliminating deductions and loopholes for “the very rich,” but his plan does not mention specifically what he plans to remove. The plan also touts a one-time repatriation tax of 10 percent on cash held overseas as a means to make up for lost tax revenue and to encourage domestic investment.
