Trump White House announces ‘biggest tax cut’ in U.S. history

The Trump administration has announced the “biggest tax cut” and “largest tax reform” in United States history.

Treasury Secretary Steven Mnuchin and Director of the National Economic Council Gary Cohn unveiled some of the details of the president’s tax reform initiative. Here are several of the facts we know right now:

– Corporate tax rate to be slashed from 35 percent to 15 percent.
– Capital gains tax will be lowered to 20 percent.
– Estate tax will be eliminated.
– Top tax rate for individuals will be 35 percent and lower tax brackets will stand at 25 percent and 10 percent.

The biggest reveal from the tax reform proposal is the elimination of individual deductions on personal taxes. This does apparently exclude charitable donations and mortgage interest. It also calls for the removal of deductions for state and local taxes from income.

So far, think-tank groups can’t establish reports or provide any projections until more details are released. What we do know, according to Mnuchin, is that this is historic.

“This is going to be the biggest tax cut and the largest tax reform in the history of our country and we are committed to seeing this through,” Mnuchin said in Washington on Wednesday.

Anyone should be skeptical of tax reform. Any initiatives to reform the tax code often lead to higher taxes and bloated budget deficits.

As legendary free market economist Murray Rothbard said, just leave the tax system alone.