As President Donald Trump rolls out his tax reform plans, U.S. Senator Ron Johnson has his own ideas. The Wisconsin Republican wants corporate shareholders to be taxed at the same rate as entities such as limited-liability corporations, whose profits are taxed in the hands of the owners at individual rates.
“There’s all kinds of benefits to taxing corporate income at the owner level,” Johnson said. “In effect it would be a true Warren Buffett tax. I’m trying to come up with tax reform, tax simplification proposal that people can actually support on a bipartisan fashion.”
President Trump’s tax reform plan includes reducing the current 7 tax brackets to only three: 10, 25 and 35 percent, and doubling the standard deduction for married couples to $24,000.
Johnson was asked what kind of economic growth that — or his plan — would generate. “Increasing taxes harms growth. Decreasing taxes, simplifying taxes will increase growth. But nobody can predict what it will be.”