The Hill article President Donald Trump is taking a “small but critical step” toward overhauling the tax code, as he seeks to end years of bipartisan dysfunction and overhaul a tax code riddled with loopholes.
Trump is proposing to end a 35 percent top rate and a 10 percent corporate rate.
The White House announced Wednesday that Trump will propose a change to the tax system that would “phase out the 10 percent top marginal rate and phase in a 20 percent rate on net capital gains and dividends.”
That would mean a 25 percent top corporate rate on all income, up from 25 percent.
That rate would be phased in from 2025 to 2026.
Trump also said he would lower the top rate on dividends to 15 percent.
Trump wants to eliminate the estate tax, which would save the wealthy millions.
He has proposed eliminating the estate deduction and repealing the alternative minimum tax, and he has called for eliminating the deduction for mortgage interest and property taxes.
The proposed change would cost the government more than $2 trillion over the next decade.
But Democrats say it would only cut taxes for the wealthy and corporations.