© CNN Money
President Trump on Monday
reiterated his promise to slash the tax rate for individuals, and for American businesses: "We are going to be cutting taxes massively for both the middle class and for companies," he said from his chair in the Roosevelt Room at the White House.
Trump's tax plan involves
collapsing the current seven-tier bracket system into just three brackets; those who make less than $75,000 would pay 12%, Americans with earnings between $75,000-$225,000 would pay 25% and workers with incomes of more than $225,000 would pay 33%. Under these reforms, taxpayers making between $48,652 and $88,148 annually would save between $1,174 and $7,052, according to the Tax Foundation.
The top rate proposed by the new administration (33%) is significantly lower than the maximum rate under President Obama, 43.8%, according to Grover Norquist, Americans for Tax Reform president.
"[The Republican plan] will offer a
standard deduction of $12,000," Norquist told FOX Business. This means,
on average, an additional $12K worth of your income will be exempt from taxes as a result of the government's policy.
Comment: Just maybe the growing EU voices against the Russian sanctions will see a US change in policy: