President Donald Trump is to announce his intention to cut the rate of corporation tax when he presents his tax plan later.
According to White House officials, the centerpiece of April 26 announcement will be a sharp reduction in the business tax rate, from 35% to 15%.
Economists say the tax cuts will add trillions of dollars to the deficit over the next decade.
However, Treasury Secretary Steven Mnuchin has said the tax plan “will pay for itself with economic growth”.
Steven Mnuchin declared it “the biggest tax cut and largest tax reform in history of this country”, according to The Hill.
Also expected in the plan:
- some sort of repatriation tax, giving big companies an incentive to bring back money they hold overseas
- tax breaks for childcare expenses
- large increase to standard tax deduction
- a cut in individual rates, although few details expected yet
- more tax rate cuts for hedge funds, and other enterprises that pay taxes at individual rates
- easing the tax form process
Donald Trump’s blueprint is not expected to include any proposals for raising new revenue.
The much-discussed border tax that would put a tariff on imports – favored by House Speaker Paul Ryan – will not be in the plan.