US President Donald Trump began his campaign to achieve comprehensive tax reform, although such an overhaul of the tax code must go through Congress for approval.
Trump launched his campaign with a rally at a Springfield, Missouri, manufacturing plant on Wednesday promising workers lower taxes, reports Efe news.
“Our tax system should benefit loyal hard-working Americans and their families,” Trump said, promising “to work with Congress, Republicans and Democrats alike” on the matter and claiming that his tax reform plans are bipartisan.
“So let’s put, or at least try to put, the partisan posturing behind us and come together as Americans,” Trump said, going on to declare that his tax overhaul plan – which he called “The American Model” – will create “millions and millions” of new jobs, bring back “trillions of dollars in wealth that’s parked overseas” and give the US a “competitive edge” in world markets.
With Treasury Secretary Steve Mnuchin and Commerce Secretary Wilbur Ross at his side, along with other members of his Cabinet, Trump wanted to make his speech a milestone marking the beginning of his efforts to achieve one of his key political goals.
The president said the US needs a tax code that is simple, fair and easy to understand and that eliminates legal loopholes and the complexities of the current tax system, but he did not provide any details about how he intends to achieve it.
He said that lowering taxes will increase the salaries of the working class.
Ideally, Trump has said, he wants to reduce corporate taxes from their current 35 per cent level to 15 per cent and also to include an increase in deductions for citizens, although he has not specified how new tax income will be produced for the government or how to deal with the country’s rising public debt.
After the fiasco he and Republican lawmakers endured in trying to repeal and replace the health care reform implemented by his predecessor, Barack Obama, Trump is looking for a victory in Congress.
Meanwhile, Democratic Senate Minority Leader Chuck Schumer warned a few hours before Trump spoke in Missouri that his party will oppose cuts in taxes on the wealthiest Americans.
Schumer said in a statement that tax reform must not increase the tax burden on the middle class and there must not be a tax cut for the richest 1 percent of Americans, “period.”
To deal with Democrats’ – and others’ – doubts about his plan, the president intends to meet with congressional leaders of both parties next Wednesday at the White House, legislative sources confirmed to Efe news.
Meanwhile, Trump must also negotiate an increase in the federal debt ceiling and budget for the coming fiscal year during September, among other pending issues.