Introduce Middle Class Tax Relief And Simplification Act
Congressional Republicans at the onset of the administration were eager to pass tax reform, and their proposals shared a lot of common ground with Trump's plan. The nonpartisan Tax Policy Center estimated that the plan would cut revenues significantly.
As of his 100th day in office, the Trump administration introduced no such legislation in this or any other matter.
Ultimately, the administration did not introduce it's own legislation, but allowed the Republican-led Congress to introduce tax changes as part of a routine budget reconciliation measure, thus bypassing the requirement for a 60% majority to approve a full tax bill. Some of Trump's proposal's in this promise (see other promises in the Tax category) were addressed by the reconciliation bill, but with significant changes.
Increase Business Tax Credits for On-Site Childcare
Eliminate Most Corporate Tax Expenditures
Eliminate Carried Interest Deduction
Create a Child Care Tax Rebate for Low-Income Households
Child Care Income Tax Deduction
Simplify Tax Forms
In October 2017, the House passed a budget resolution (H. Res. 553 , H. Con. Res. 71) that specified restructuring the tax brackets and simplifying forms, though not giving any specifics. The restructured tax brackets did not carry through the final reconciliation, which retained seven brackets with different rates.
As of this writing there is no word on how tax forms might change due to the 2017 budget reconciliation bill, but given that the bill did not fundamentally change the tax code it is unlikely that tax forms will see any significant changes in complexity.
Restructure Tax Deductions
In late April, 2017, Trump announced a draft tax plan that would increase the standard deduction in order to deter taxpayers from taking itemized deductions. The idea was carried through to the Republican tax reconciliation bill later that year, changing the standard deduction from $6500 to $12000 for single filers, and from $13000 to $24000. In addition to these being less than he initially promised, the bill also sets an expiration for the increased standard deductions and stripped all personal exemptions.
Additionally, although numerous deductions were restructured, no limit on deductions was imposed and, in fact, the existing limits on deductions based on specific AGI amounts as suspended. The bill was signed into law in December 2017.
(Sec. 11021) This section temporarily increases the standard deduction to $24,000 for married individuals filing a joint return, to $18,000 for head-of-household filers, and to $12,000 for all other taxpayers. The amount of the standard deduction is indexed for inflation after 2018 using the chained CPI.
(Sec. 11046) This section suspends the overall limitation on itemized deductions, which currently applies when AGI exceeds a specified amount.
Restructure Tax Brackets
In late April, 2017, Trump announced a draft tax plan that cut seven tax brackets to three, but the plan did not specify any specific numbers for the breaks or any other details on its implementation.
In October 2017, the House passed a budget resolution (H. Res. 553 , H. Con. Res. 71) that specified "substantially lowering tax rates for individuals and consolidating the current seven individual income tax brackets into fewer brackets." The exact brackets were not defined and the specific language did not make it into the final budget reconciliation bill that was passed in December 2017. Although the rates changed, seven brackets were retained in the new legislation.
Repeal ACA Tax on Investment Income and AMT
Although not part of any legislation advanced by Trump, the House GOP introduced and passed a repeal bill in May 2017 that would effectively strip away ACA-related taxes. The bill failed to pass.
In October 2017, the House passed a budget resolution (H. Res. 553 , H. Con. Res. 71) that specified "repealing the Alternative Minimum Tax." The specific terms in the resolution failed to pass through the final reconciliation bill in December 2017 meaning that repeal of the ACA tax provisions will likely hinge on another ACA repeal attempt.