Analysts say President Donald Trump's new plan calls for a complete 180 of the current tax code.
"These tax cuts are significant. There's never been tax cuts like what we're talking about," said President Donald Trump.
The details of the plan are up to Congress, but the White House did release the framework on Wednesday. Some aspects of the plan include slashing the tax on corporations from 35% to 20% for individuals and families, reducing the tax brackets for individuals and families from seven to three, and doubling the standard deduction so that families would see no tax on the first $24,000 of income. Also in the plan, a cut for the rich. Top earners would see their rate decrease to 35%, while low income earners would see a 12% increase.
The White House says the goal of the plan is to spur immediate economic growth. UW-Eau Claire Economic Department Chair, Dr. Thomas Kemp, says there are both pros and cons for people living in the Chippewa Valley.
“Well it means almost certainly your going to get larger deficits down the road, but it also means that households and businesses will have more income to spend on other things,” Dr. Thomas Kemp told News 18.
The last president that was able to achieve such a drastic tax code change was Ronald Reagan, however he developed a working relationship with Democrats. Dr. Kemp says for Trump to succeed, he'll likely have to do the same.