Pres. Trump talks tax reform plan at annual Heritage Foundation - FOX Carolina 21

Pres. Trump talks tax reform plan at annual Heritage Foundation meeting

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Donald Trump (Courtesy: Wikimedia Commons/ Gage Skidmore) Donald Trump (Courtesy: Wikimedia Commons/ Gage Skidmore)
WASHINGTON (FOX Carolina) -

President Donald Trump addressed his tax reform plan during the Heritage Foundation’s annual President’s Club Meeting Tuesday evening.

The plan aims to bring “lower taxes on American business [which] means higher wages for American workers, and it means more products made right here in the USA,” the president said.

During the meeting, Trump said the framework of the tax reform plan will bring corporate money back to America. He said small businesses will enjoy the lowest top marginal rate in more than 80 years.

"You will see things happen like have never happened before. We will have employment, we will have jobs... and we certainly won't have companies leaving our country..." Trump said Tuesday.

Here is the framework of the tax reform plan as released by the Office of the Press Secretary on Tuesday:

PAY RAISE FOR AMERICANS: The tax relief and tax cuts supported by President Donald J. Trump will boost wages for hardworking Americans.

  • The average American household income could increase between $4,000 and $9,000 a year in wages and salary alone by cutting the Federal corporate income tax rate from 35 percent to 20 percent, according to an analysis by the Council of Economic Advisors (CEA).

                  - Developed countries with the low corporate tax rates have seen significantly higher wage growth compared with developed countries with                              higher rates.

                  - Reducing corporate tax rates will raise wages for workers of all skill levels.

  • Wages and corporate profits used to grow at nearly the same rate, but that is no longer the case. In the last eight years, wage growth has stagnated while corporate profits increased by an average of 11 percent per year, according to an analysis by the CEA.

                  - Wage growth has failed to keep pace with corporate profits as corporate tax rates in the United States have become uncompetitive.

                  - More than 70 percent of the corporate tax burden falls on Americans workers, according to an analysis from the Congressional Budget Office.

INVESTING IN AMERICAN JOBS: The Unified Framework for Fixing Our Broken Tax Code supported by President Trump will end the “offshoring model” as companies will bring profits back and invest in American workers.

  • In 2016, a Federal corporate tax rate of 20 percent could have brought more than $140 billion in corporate profits back to America, according to an analysis by the CEA.

                 - Those profits could have helped boost the incomes of U.S. households.

  • Our current uncompetitive corporate tax rate encourages U.S. firms to keep profits offshore.

                 - The United States has the highest corporate income tax rate among the 35 industrialized Organisation for Economic Co-operation and   

                    Development (OECD) countries, according to the OECD.

                 - The U.S. corporate tax rate has been higher than the OECD average for almost 20 years.

  • Last year, more than 70 percent of foreign profits earned by U.S. firms were kept offshore, up from 42 percent in 1984, according to an analysis by the CEA.

                  - Companies hold an estimated $2.8 trillion in earnings offshore, according to Audit Analytics.

  • Cutting corporate tax rates will encourage firms to invest back in the United States, creating well-paying jobs for hardworking Americans.

                  - After President Bush’s 2003 tax cuts, the economy created 7.8 million jobs over five years, based on data from the Bureau of Labor Statistics.

                  - After President Reagan’s 1981 tax cuts, the economy created 14.8 million jobs over five years based on data from the Bureau of Labor

                    Statistics.

                  - After President Kennedy’s tax cuts, the economy created 12.0 million new jobs over five years based on data from the Bureau of Labor

                    Statistics.

TAX CUTS AND TAX RELIEF: The Unified Framework supported by President Trump will mean hardworking Americans can keep more of their money.

  • Double the standard deduction so that more income is taxed at zero percent.

                   - The first $12,000 of income for individuals and $24,000 for married couples will be income tax-free.

  • Lower individual income tax rates to: 12 percent, 25 percent, and 35 percent.
  • Increase the Child Tax Credit and expand it to benefit more middle-income families and eliminate the marriage penalty.
  • Create a new $500 tax credit for those caring for an adult dependent or elderly loved one.

RELATED COVERAGE: White House: $4,000 more for families with business tax cuts

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