Trump Plans Big Increase in Standard Tax Deduction

Another detail of President Trump's tax overhaul plan has surfaced ahead of the expected Wednesday announcement, and it will be probably be a popular one: Sources tell the Washington Post that Trump plans a hefty increase in the standard deduction people can claim on their tax returns. White House officials say this will simplify tax filings for millions and give middle-income families thousands more dollars to spend a year, boosting the economy. It's not clear how far Trump plans to propose raising the deduction from the current $6,300 for individuals and $12,600 for married couples, though the number he cited on the campaign trail was $15,000 for individuals and $30,000 for families.

Details of the plan were still being firmed up Tuesday evening, the New York Times reports, but the centerpiece remains slashing the business tax rate to 15%. Democrats have been keen to point out that this would apply to entities like Trump's real-estate empire as well as standard corporations. The Times' sources say the plan doesn't include Trump's $1 trillion infrastructure plan. The sources say Trump has rejected a House GOP proposal for a "border adjustment tax" on imports, which might have helped pay for the cuts. Analysts tell Politico that unless Trump can show congressional Republicans a realistic way to pay for his tax cuts, his proposals could end up damaging the chances of real reform happening. (More taxes stories.)