In his first major policy speech since taking office, President Donald Trump said Wednesday that he will cut taxes for taxpayers by $4.5 trillion in 2019 and $6 trillion over the next 10 years, as well as cut taxes on businesses and the wealthy.
Trump’s tax plan includes $5.6 trillion in new revenue over 10 years from a two-year cut in the corporate income tax rate and a one-time $3.8 trillion cut in rates on individuals.
Trump also said the plan will increase the standard deduction and eliminate some tax breaks for individuals.
But he will double the standard deductions and eliminate the tax deduction for state and local income taxes.
He will also eliminate the estate tax and other estate tax deductions.
Trump is making his tax plan a centerpiece of his first budget.
He wants to make $1.4 trillion in tax cuts, including a $2.2 trillion reduction in the tax rate for individuals, $1 trillion for businesses and $500 billion for the wealthy, his budget director, Mick Mulvaney, told reporters at the White House.
He is expected to propose a $1,000 income tax credit for families.
Trump said he would be reducing the corporate tax rate from 35 percent to 15 percent and reducing the individual tax rate to 25 percent, the same as other countries.
But some experts said the president’s proposal would likely increase the deficit and increase taxes for the middle class, while other analysts said the proposal would actually add to the deficit.
The nonpartisan Tax Policy Center, for example, estimated that Trump’s plan would add $5 trillion to the national debt over the course of his presidency.