Details on new Trump tax cuts are expected to be released by September, however some hints on the structure are emerging.
Per Politico, President Donald Trump’s long-promised “Tax Cuts 2.0” plan will be released in September, with a 10 percent cut for middle-income taxpayers under discussion, a top White House official said today.
“In a meeting in the Oval, I guess two days ago, he looked at me and he said, ‘Let’s get it out by September,”National Economic Council Director Larry Kudlow told Fox Business Network. “We’d love to have a 10 percent middle-class tax cut, and we would love to strengthen and make permanent some of other tax cuts.”
“It will come out sometime in September,” he said.
As the timing of the plan’s release indicates, the proposal is mostly designed to set up a contrast with Democrats ahead of the November elections. Democrats’ tax plans are focused on raising taxes on the rich.
Larry Kudlow when asked about speculation that the White House was contemplating a 15 percent tax rate for the middle class told CNBC during an interview that it sounded like “a pretty good idea.”
FoxBusiness reports the Trump administration is aiming to introduce another middle-class tax cut before the November election, and the package could include a measure that would give larger tax breaks to certain retirement savings.
The administration is considering including a proposal known as USA accounts – which would combine and simplify all existing savings accounts that give tax breaks (401(k)s, IRAs), a senior administration official told FOX Business on Friday. There may be limits, however, as to how large the tax break could extend through these vehicles.
The idea is popular among lawmakers on Capitol Hill, according to the same official, who cautions that no final decisions have been made.
The idea of a Universal Savings Account has been floated by Republicans before, under the guise that contributions would be taxed but earnings would grow tax-free and would be easier to withdraw than a traditional retirement account.
The administration is also considering including a proposal to treat a portion of household income as tax-free if it is invested outside of a traditional 401(k) account, CNBC reported Friday.
A spokesperson for the Treasury Department did not immediately return FOX Business’ request for comment regarding that proposal.
President Trump has said he is aiming to pass another “very big” middle-class tax cut, targeting even faster U.S. economic growth.