Trump, GOP Leaders Propose Largest Tax Overhaul in Decades

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Speaker of the House Paul Ryan (R-WI) speaks during a news conference to discuss their plans for tax reform, September 27, 2017 in Washington, DC. On Wednesday, Republican leaders proposed cutting tax rates for the middle class, wealthy and businesses. Key questions remain on how they plan to offset the trillions of dollars in lost tax revenue.  (Photo: Drew Angerer/Getty Images)

In the wake of another failed effort to repeal the Affordable Care Act, President Donald Trump and Republican leaders announced Wednesday a plan for the largest overhaul to the American tax code in decades. The plan, dubbed the "Unified Framework for Fixing Our Broken Tax Code," lowers the highest individual tax rate, increases the standard deduction and drops the corporate tax rate from 35 percent to 20 percent. Supporters say the sweeping changes will make American businesses more competitive but critics say the plan hurts middle class and poor Americans while letting corporations and wealthy individuals off the hook. A preliminary analysis by the Committee for a Responsible Federal Budget said the tax plan would worsen the federal deficit by $2.2 trillion over the next 10 years. We discuss the proposed plan.

Jared Bernstein, senior fellow, Center on Budget and Policy Priorities; former chief economist to Vice President Joe Biden; author, "The Reconnection Agenda: Reuniting Growth and Prosperity"
Chris Edwards director of Tax Policy Studies, The Cato Institute; editor,