Trump tax plan reduces top income tax rate; creates 3 tax brackets

NEW YORK (FOX 5 NY) - President Donald Trump wants to simplify the personal tax code by cutting rates and eliminating deductions used by more affluent Americans.

Speaking from the Brady Press Room, White House economic adviser Gary Cohn announced the plan details which include cutting the top income tax rate from 39.6 percent to 35 percent; reducing the number of personal income tax brackets to three from seven and ending the so-called death tax.

The new tax rates would be 10 percent, 25 percent, and 35 percent.

The plan would double the standard deduction for married couples to $24,000 while keeping deductions for charitable giving and mortgage interest payments. The plan would trim other deductions used by high-income Americans, including state and local tax payments.

It would also repeal the estate tax, the catch-all alternative minimum tax, and the 3.8 percent tax on investment income from President Barack Obama's health care law.

With the Associated Press