At a press conference Thursday, House Speaker Paul Ryan unveiled the biggest tax reform plan since the Reagan administration.
The proposed plan will slash the corporate tax rate from 35 percent to 20 percent, lower taxes for most people, and will limit a deduction for homeowners. By reducing the corporate rate alone, federal revenues will decrease by $1.5 trillion in the next decade.
When it comes to individuals, tax brackets would be reduced from seven to three: 12,25 and 35 percent.
According to Ryan, the time for change is now.
“With this plan, we are making pro-growth reforms so that American can compete with the rest of the world, but we’re also making it so families like these that are here can have more take-home pay,” he said during Thursday’s announcement.
The American Farm Bureau Federation (AFBF) said in a statement that the bill “recognizes the unique financial challenges of farmers and ranchers.”
On the farm, this plan would continue the business interest deduction and would repeal the estate tax, or death tax.