President Donald Trump spoke to a group of truck drivers and carriers on Wednesday in Middletown, Pa. about the benefits of his tax reform plan, which is backed by strong support from trade group the American Trucking Associations (ATA).
President Donald Trump spoke to a group of truck drivers and carriers Wednesday at the Harrisburg International Airport in Middletown, Pa. about the benefits of his tax reform plan.
The U.S. unemployment rate is at a 16-year low, wages are rising and the stock market is soaring to record levels, Trump said in his speech.
“America is finally back on the right track, but our country and our economy cannot take off like they should unless we transform America’s outdated, complex and extremely burdensome tax code,” he said.
The tax reform plan calls for:
• Doubling the standard deduction so that more income is taxed at 0 percent (the first $12,000 of income for individuals and $24,000 for married couples will be income tax-free);
• Cutting the corporate tax rate to 20 percent and limiting the maximum tax rate applied to the business income of small and family owned businesses conducted as sole proprietorships, partnerships and S corporations to 25 percent;
• Consolidating the seven existing income tax brackets for taxable income to only three brackets (12 percent, 25 percent and 35 percent);
• Increasing the Child Tax Credit and expanding it to benefit more middle-income families, and eliminating the marriage penalty in the existing credit;
• Repealing the Alternative Minimum Tax, which requires many taxpayers to do their taxes twice;
• Eliminating the estate tax, also known as the “Death Tax;”
• Creating a non-refundable credit of $500 for non-child dependents to help defray the cost of caring for other dependents;
• And simplifying taxes, resulting in the vast majority of Americans being able to file their taxes on a single sheet of paper.
Trump said in his speech that cutting the business tax rate will allow American businesses to win against foreign competitors.
“We need a tax system that is fair to working families and that encourages companies to stay in America, grow in America, spend in America and hire in America,” he said.
In addition, he stressed the importance of the trucking industry in particular, saying that, “Nothing gets done in America without the hardworking men and women of the trucking industry. When your trucks are moving, America is growing.”
The American Trucking Associations (ATA) on Wednesday expressed support for Trump’s tax reform plan.
ATA President Chris Spear said that lower rates will lead to more money the trucking industry can use to hire and pay drivers, purchase new and safer equipment, or higher highly skilled technicians to maintain that equipment.
“Higher tax rates mean higher transportation costs, which make everyday goods more expensive – hurting lower-income Americans the most,” Spear said. “By contrast, the benefits of lowered rates will reverberate up and down the supply chain, from the manufacturer to the small business and individual household.”
Trump touts tax reform plan to truckers
