Trump's tax plan would repeal AMT, estate tax: report

Trump's tax plan would repeal AMT, estate tax: report
© Greg Nash

An overview of President Trump's tax plan obtained by a CNN reporter says that the proposal will include tax relief for the middle class and do away with the estate tax and the alternative minimum tax (AMT).

Trump's plan is coming out Wednesday afternoon and the situation is said to be fluid. CNN reporter Jim Acosta tweeted that the overview was based on where things stood on Tuesday. 
 
With that caveat, here are some of the highlights: 
 
-  There would be tax relief for middle-income families and provisions aimed at helping people with childcare costs.
 
-  The current seven individual income tax brackets would be collapsed into three. (Journalists at Bloomberg and Fox News are reporting that the rates will be 10 percent, 25 percent and 35 percent, which are slightly different from the rates in Trump's campaign plan and the House Republican blueprint.)
 
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- The corporate tax rate would be reduced to 15 percent, and small businesses would also be eligible for this rate. (Mnuchin confirmed this provision at an event hosted by The Hill Wednesday morning.)
 
- The alternative minimum tax, the estate tax and ObamaCare's 3.8 percent surtax on net investment income for high earners would all be eliminated.
 
- All itemized deductions except those for mortgage interest and charitable contributions would be eliminated. Other tax preferences would also be repealed.
 
- The U.S. would move to a "territorial" tax system that does not tax U.S. corporations' foreign earnings. Companies' earnings that are currently held abroad would face a onetime tax.