Trump administration proposes big changes to taxes

Photo: CBS News

WASHINGTON — President Donald Trump wants to simplify the personal tax code by cutting rates and eliminating deductions used by more affluent Americans.

White House economic adviser Gary Cohn says the plan would cut the top income tax rate from 39.6 percent to 35 percent.

It also would reduce the number of personal income tax brackets to three from seven.

The new tax rates would be 10 percent, 25 percent and 35 percent.

The plan would double the standard deduction for married couples to $24,000, while keeping deductions for charitable giving and mortgage interest payments.

The plan would trim other deductions used by high-income Americans, including state and local tax payments.

It would also repeal the estate tax, the catch-all alternative minimum tax and the 3.8 percent tax on investment income from President Barack Obama’s health care law.