Donald Trump launches tax overhaul plan with promise of cuts for middle class and end of loopholes

Donald Trump launched his push for a tax overhaul on Tuesday with populist promises of tax cuts for the middle class coupled with an end to loopholes used by the super rich even as opponents said his plan lacked details and was doomed to failure.

“This is a once-in-a-lifetime opportunity to deliver tax reform for hard-working Americans,” said Mr Trump in front of supporters at a factory manufacturing fans and laboratory exhaust systems in Springfield, Missouri.

The backdrop was designed to emphasise the benefits to blue-collar, Midwestern voters who helped propel Mr Trump to power.

He laid out the four principles driving his agenda: Simplifying tax rules and removing loopholes used by the rich; ensuring the tax code helps American workers; providing tax relief for middle class families; and attracting back profits held overseas by big corporations.

“If we unite in the name of common sense and the name of common good then we will add millions and millions of new jobs, bring back trillions of dollars and we will give America the competitive advantage it so desperately needs and has been looking for for so long,” he said.

In April the White House said it wanted to slash corporate tax to 15 percent, and reduce personal tax rates to three bands of 10 percent, 25 percent and 34 percent. But since then the issue has been handed to Congress for drafting amid reports that the original proposals have been revised.

The result is that there is no plan yet for Mr Trump to sell, even as tax reform takes on even greater importance for a president who has seen much of his legislative agenda stall.

Years of Republican promises to repeal and replace Obamacare have come to naught, Mr Trump’s wall with Mexico has made little progress and he is now at loggerheads with his leadership in Congress.

Against that backdrop, Mr Trump’s promise to promote economic growth and create jobs while reducing tax bills appears a tall order.

Jeanne Zaino, professor of political science at Iona College, New York, said it was difficult to see tax reform providing Mr Trump with the big win he wanted.

“It’s going to be what these things always are: Convoluted, complicated and nobody’s going to be happy. This is going to be harder for him to do than healthcare,” she said.

Democrats fear tax reform really mean just tax cuts for the rich.

“This is going to be one of the biggest fights of the next three or four months, and Democrats are ready for it,” said Chuck Schumer, who leads Democrats in the Senate, before Mr Trump spoke.