Trump is planning to unveil his tax plans Wednesday, with aides saying he will ask Congress to slash the current 35 percent rate down to 15 percent, a pledge he first made during last year's presidential election campaign.
A 15% top rate for corporations and pass throughs would be drastically lower than today's rates and lower than the top rate for ordinary wage income called for under the House Republicans' tax reform proposal, as well as the plan Trump proposed past year.
The Trump administration has dropped any support for a border adjustment tax on imports, NY Times reports, citing two officials who have been briefed on the matter.
With financial markets eagerly anticipating a White House tax plan, Trump will also call for a sharp cut in the top rate on pass-through businesses, including many small business partnerships and sole proprietorships, to 15 percent from 39.6 percent, an administration official said.
"I don't expect it to be in that tomorrow, but then I don't know for sure, because I haven't seen what they're going to propose", Sen.
White House National Economic Council Director Gary Cohn said last week that Trump's tax plan may involve using some tax revenue from businesses bringing foreign earnings back into the USA for infrastructure. But if he didn't, that would greatly undercut the value of the rate reduction to 15% for many corporations because they would have a higher tax bill under the AMT, said Roberton Williams of the Tax Policy Center. Experts throw cold water on that idea, since there is no evidence that tax cuts pay for themselves.
Whether Trump will include provisions that could attract Democratic votes, such as a proposal to fund infrastructure spending or a child-care tax credit as proposed by his daughter Ivanka, is still the subject of speculation. That means Democrats would have to support it, and Republicans and Democrats have major differences when it comes to tax reform.
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An ICM poll for the Guardian today put the Tories 21 points ahead of Labour, enough to deliver a massive majority. He will tell the delegates at Aviemore: "The choice facing the country is clear".
Meeting Mnuchin and Cohn along with McConnell will be House Speaker Paul Ryan and the chairmen of the Senate and House tax committees: Orrin Hatch and Kevin Brady, respectively.
As Mnuchin left the Capitol he told reporters there is "no question" the Trump administration and Republicans in the Senate and House agree on the "fundamental principles of tax reform".
"There is no reason that we should not be able to hit that - if not beat it", Ross said at the White House news briefing.
Since it will clash in some ways with a broader tax plan shaped months ago by House of Representatives Republicans, the Trump document may complicate consensus-building, analysts said.
Even a slight change to the corporate tax rate would have massive impacts for the economy and the federal budget deficit. He also thinks a lower corporate rate would unite the Trump White House's business-leaning and nationalistic wings.
Edwards supports the effort to lower the corporate tax rate, and he said fewer corporations would avoid taxes and shift their profits overseas if a lower rate were to be enacted.
The Ryan-Brady plan did include "pay-fors", including a proposed "border adjustment" tax that would favor exports and discourage imports.