US President Donald Trump reacts as he arrives at the White House from Indianapolis, in Washington DC, US September 27, 2017.(REUTERS)
US President Donald Trump reacts as he arrives at the White House from Indianapolis, in Washington DC, US September 27, 2017.(REUTERS)

Trump proposes biggest US tax overhaul in 3 decades, stirs concerns on deficit

Trump’s tax plan faces an uphill battle in the US Congress with Trump’s own Republican Party divided over it and Democrats hostile.
By Yashwant Raj | Hindustan Times, Washington
UPDATED ON SEP 28, 2017 05:44 PM IST

US president Donald Trump and Republican leaders unveiled on Wednesday the most sweeping tax changes in decades, slashing rates for both businesses and individuals in the hopes of turning around their dismal record in pushing their legislative agenda, including failure to repeal and replace Obamacare, their pet peeve.

The top corporate tax rate would drop, according to the proposal, from 35% to 20%, the top highest rate for individual payers comes down from 39.6% to 35% and tax brackets for others shrink from seven to three — 12,%, 25% and 35%, with the possibility, left undefined still, of a fourth.

The plan, which experts said proposed changes of the magnitude last done in the late 1980s, also raised standard deductions and child credits and eliminated minimum alternate tax — a supplemental tax designed to offset benefits accruing from deductions and reliefs — and estate tax.

“This is a once-in-a-generation opportunity, and I guess it’s probably something I can say that I’m very good at,” the president said in Indianapolis at a rally touted as a tax-reform event. “I’ve been waiting for this for a long time.”

“We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans, and we are going to bring back the jobs and wealth that have left our country -- and most people thought left our country for good.”

The president went on to say he expected Democrats and Republicans in Congress to come together, “finally, to deliver this giant win for the American people and begin middle-class miracle -- it’s called a middle-class miracle, once again”, and added he was confident of finding support from Democrats.

But that will be easier said than done. Democrats plan to stand as a block in opposition to the tax revamp, as they have on most legislative issues to stymie the president, such as the repeal and replacing of Obamacare, which has been defeated by opposition within the Republican party, already beaten into a corner by unified Democrats.

“Each of these proposals would result in a massive windfall for the wealthiest Americans, and provide almost no relief to middle-class taxpayers who need it most,” Chuck Schumer, leader of Senate Democrats said on the floor of the body. “It seems like President Trump and Republicans have designed their plan to be cheered in the country clubs and the corporate boardrooms.”

The conservative-leaning Wall Street Journal welcomed the new plan, saying in an editorial, “Overall, the GOP has produced a tax-reform outline that can revitalise a weak economic expansion, lead to more new business creation, enhance worker productivity, and lift wages.” A thumbs up, in short.

The New York Times concluded, also in an editorial, the framework was “a wish list of tax cuts for the wealthy” and that it would “greatly increase the federal deficit, would not turbocharge economic growth and could leave many middle-class families worse off by ending deductions they rely on.” A thumbs-down, clearly.

The non-partisan Committee for a Responsible Federal Budget estimated that the nine-page “unified framework” plan called for about $5.8 trillion in tax cuts offset by $3.6 trillion in revenue-raising provisions; that leaves a net cut of $2.2 trillion.

SHARE THIS ARTICLE ON
app
Close
This photo taken on January 20, 2021 shows members of a rescue team working at the site of a gold mine explosion where 22 miners are trapped underground in Qixia, in eastern China's Shandong province. (Photo by STR / various sources / AFP) / China OUT(AFP)
This photo taken on January 20, 2021 shows members of a rescue team working at the site of a gold mine explosion where 22 miners are trapped underground in Qixia, in eastern China's Shandong province. (Photo by STR / various sources / AFP) / China OUT(AFP)

China rescues four miners after 14 days trapped underground

Reuters, Beijing
PUBLISHED ON JAN 24, 2021 11:43 AM IST
One miner has died and 11 have not been in contact with rescue teams, according to a Xinhua report from last week.
Close
People wait in line at a coronavirus disease (Covid-19) testing clinic at Mona Vale Hospital in the wake of a new outbreak in the Northern Beaches area of Sydney, Australia. (Reuters)
People wait in line at a coronavirus disease (Covid-19) testing clinic at Mona Vale Hospital in the wake of a new outbreak in the Northern Beaches area of Sydney, Australia. (Reuters)

Australia awaits vaccination drive even though coronavirus under control

Reuters
PUBLISHED ON JAN 24, 2021 11:20 AM IST
Recent government figures showed an overall 95.09% rate for regular vaccinations for five-year-olds in the December quarter, suggesting a positive attitude towards vaccinations among the public.
Close
As the pandemic extends into a second year and more contagious variants of the virus emerge, governments worldwide -- though mainly wealthy ones -- are rolling out vaccines to protect their populations.(Reuters Photo )
As the pandemic extends into a second year and more contagious variants of the virus emerge, governments worldwide -- though mainly wealthy ones -- are rolling out vaccines to protect their populations.(Reuters Photo )

Covid shot scarcity weighs on hopes for Biden’s global push

Bloomberg
PUBLISHED ON JAN 24, 2021 11:19 AM IST
Vaccine advocates have urged wealthy nations to share some of the supplies they’ve snapped up in recent months and to follow the lead of Norway, which pledged to donate extra doses through Covax.
Close
Wuhan resident Zhu Tao speaks during an interview near boxes of instant noodles stacked in his bedroom at home in Wuhan in central China's Hubei province. (AP)
Wuhan resident Zhu Tao speaks during an interview near boxes of instant noodles stacked in his bedroom at home in Wuhan in central China's Hubei province. (AP)

Year after lockdown, Wuhan dissident more isolated than ever

AP
PUBLISHED ON JAN 24, 2021 10:58 AM IST
Zhu, a 44-year-old smelter at the city’s state-run iron and steel works, is well outside the mainstream in China. He is a hardboiled government critic, an on-and-off demonstrator, a supporter of the Hong Kong democracy movement.
Close
Former US President Donald Trump at a campaign rally in Dalton, Georgia, US. (Reuters/ File photo)
Former US President Donald Trump at a campaign rally in Dalton, Georgia, US. (Reuters/ File photo)

Citizenship data is latest rollback of Trump census efforts

AP
PUBLISHED ON JAN 24, 2021 10:31 AM IST
Among his first acts as president, Biden's order revoked two Trump directives related to the 2020 census.
Close
An employee wearing a protective mask cleans a table at a restaurant in Kedonganan, Bali, Indonesia,. (Bloomberg)
An employee wearing a protective mask cleans a table at a restaurant in Kedonganan, Bali, Indonesia,. (Bloomberg)

Indonesia sees risks to growth on virus curbs, natural disasters

Bloomberg
PUBLISHED ON JAN 24, 2021 10:29 AM IST
President Joko Widodo expected the economy to rebound as soon as the start of this year, calling 2021 as the year when the country can see a turnaround after last year plunging into its first recession in two decades.
Close
Britain has recorded more than 3.5 million Covid-19 infections - the fifth-highest in the world - and nearly 96,000 deaths.(REUTERS)
Britain has recorded more than 3.5 million Covid-19 infections - the fifth-highest in the world - and nearly 96,000 deaths.(REUTERS)

UK extends councils' lockdown powers until July 17: Report

Reuters
PUBLISHED ON JAN 24, 2021 10:09 AM IST
Britain has recorded more than 3.5 million Covid-19 infections - the fifth-highest in the world - and nearly 96,000 deaths.
Close
Malaysia and Vietnam are two of the countries that have over-lapping claims to parts of the South China Sea. China claims most of the waterway.(Reuters/ Representative)
Malaysia and Vietnam are two of the countries that have over-lapping claims to parts of the South China Sea. China claims most of the waterway.(Reuters/ Representative)

Malaysia detains 16 Vietnamese fishermen, two boats for trespassing

Reuters
PUBLISHED ON JAN 24, 2021 09:27 AM IST
"Checks conducted on the two boats found that 16 crew members including the skippers, aged 18 to 62, did not have any valid identification documents nor possessed any licence to fish in the country's waters," Terengganu MMEA director Captain Muhammad Suffi Mohd Ramli was reported as saying.
Close
Members of a Chinese military honour guard stand at attention during a rehearsal before the parade in Beijing. In his speech, Xi said China “must adhere” to the one country, two systems policy governing Hong Kong and “maintain the long-term prosperity and stability” of the city. (Mark Schiefelbein / AP)
Members of a Chinese military honour guard stand at attention during a rehearsal before the parade in Beijing. In his speech, Xi said China “must adhere” to the one country, two systems policy governing Hong Kong and “maintain the long-term prosperity and stability” of the city. (Mark Schiefelbein / AP)

Chinese military pressure on Taiwan threatens regional peace, stability: US

PTI, Washington
PUBLISHED ON JAN 24, 2021 09:10 AM IST
The US will continue to support a peaceful resolution of cross-strait issues, consistent with the wishes and best interests of the people on Taiwan, State Department Spokesperson Ned Price said.
Close
Trump was impeached on the charge of “incitement of insurrection” by the House last week in a bipartisan vote.(HT_PRINT)
Trump was impeached on the charge of “incitement of insurrection” by the House last week in a bipartisan vote.(HT_PRINT)

Donald Trump’s impeachment trial to start on February 9

By Yashwant Raj
PUBLISHED ON JAN 24, 2021 06:44 AM IST
The House will convey the article of impeachment to the Senate on Monday at 7pm, as announced earlier on Friday. The delay will allow the Senate to confirm President Joe Biden’s cabinet nominees.
Close
Sullivan “underscored that the US will support the peace process with a robust and regional diplomatic effort”, said a readout from the US national security council.(AP)
Sullivan “underscored that the US will support the peace process with a robust and regional diplomatic effort”, said a readout from the US national security council.(AP)

Biden administration to review Taliban deal

By Rezaul H Laskar, New Delhi
PUBLISHED ON JAN 24, 2021 06:42 AM IST
The commitment, made by new US National Security Adviser Jake Sullivan during a phone call to his Afghan counterpart Hamdullah Mohib, comes against the backdrop of concern in the region over a surge in violence and assassinations blamed on the Taliban.
Close
In Hong Kong, authorities said an area comprising 16 buildings in the city’s Yau Tsim Mong district would be locked down until all residents were tested.(Twitter/stellarpbtech)
In Hong Kong, authorities said an area comprising 16 buildings in the city’s Yau Tsim Mong district would be locked down until all residents were tested.(Twitter/stellarpbtech)

Global Covid-19 infections near 100 million mark

By HT Correspondent, Hong Kong/washington
PUBLISHED ON JAN 24, 2021 06:39 AM IST
The US, India, Brazil, Russia and the UK are the five worst-hit countries, with the widely followed Johns Hopkins University tracker’s worldwide tally showing 98.27 million infections as of Saturday evening. The disease has claimed over 2.1 million lives around the world.
Close
Police detained more than 2,131 people, including 795 in Moscow, the OVD-Info monitoring group reported. Among those detained were Navalny’s wife Yulia Navalnaya, who was later released, and his prominent aide Lyubov Sobol.(AP)
Police detained more than 2,131 people, including 795 in Moscow, the OVD-Info monitoring group reported. Among those detained were Navalny’s wife Yulia Navalnaya, who was later released, and his prominent aide Lyubov Sobol.(AP)

Over 2,000 held at anti-Putin rallies

PUBLISHED ON JAN 24, 2021 06:36 AM IST
Thousands of people, including teenagers, packed Moscow’s central Pushkin Square and nearby streets as riot police hauled off demonstrators and beat others with batons.
Close
Israeli protesters chant slogans during a demonstration against Israeli Prime Minister Benjamin Netanyahu In Jerusalem, (AP)
Israeli protesters chant slogans during a demonstration against Israeli Prime Minister Benjamin Netanyahu In Jerusalem, (AP)

Protests against Israeli PM Netanyahu continue nationwide

AP
PUBLISHED ON JAN 24, 2021 06:24 AM IST
Benjamin Netanyahu faces charges of fraud, breach of trust and accepting bribes in three cases involving billionaire associates and media moguls.
Close
Democratic Rep. Alexandria Ocasio-Cortez(AP)
Democratic Rep. Alexandria Ocasio-Cortez(AP)

Texan man charged in Capitol riot tweeted 'Assassinate AOC': FBI

AP
PUBLISHED ON JAN 24, 2021 06:21 AM IST
Garret Miller, who is from the Dallas suburb of Richardson, was arrested Friday after being named in a five-count federal complaint.
Close
SHARE
Story Saved
OPEN APP