Trump raises top individual rate in his tax plan

Donald Trump on Monday raised the top individual tax rate in his plan from 25 percent to 33 percent, putting his proposal in line with the tax-reform blueprint from House Republicans.

“My plan will reduce the current number of brackets from 7 to 3 and dramatically streamline the process,” he said at a speech in Detroit. “We will work with House Republicans on this plan, using the same brackets they have proposed: 12, 25 and 33 percent. For many American workers, their tax rate will be zero.”

The tax plan Trump released last September proposed individual tax rates of zero, 10, 20 and 25 percent. The current top individual tax rate is 39.6 percent.

During an event last month, economic advisers to Trump said revisions to the GOP presidential nominee’s plan would come closer to the House Republican plan, which was released in June.

“If you like the Paul Ryan plan you’re going to like our plan,” Trump adviser Stephen Moore said at the time.

Trump also announced in his speech Monday that he would allow businesses to be able to immediately write off the costs of their investments. This concept was also a part of the House GOP tax plan.

Trump said he would “help reduce the cost of childcare by allowing parents to fully deduct the average cost of childcare spending from their taxes.”

Additionally, Trump reiterated several tax proposals that were part of the plan he released last September. These include lowering the corporate tax rate and the rate for pass-through business income to 15 percent, repealing the estate tax and repatriating U.S. businesses’ foreign earnings at 10 percent.