Corporations and small enterprises both set to benefit from one of the biggest rate reductions in country’s history, according to President.
President Donald Trump plans to propose massive tax cuts for businesses big and small as part of an overhaul that he says will provide the biggest tax cuts in US history.
In addition to big tax cuts for corporations, Trump additionally wants to cut taxes for small business owners from a top tax rate of 39.6 percent to a top rate of 15 percent, said an official with knowledge of the plan.
The top tax rate for individuals would be cut from 39.6 percent to the “mid-30s,” the official said.
The official, who talked on condition of anonymity, was not authorised to discuss the plan openly ahead of Trump’s announcement, scheduled for Wednesday.
White House officials had already revealed that Trump’s plan would reduce the top corporate income tax rate from 35 percent to 15 percent. The plan will likewise include child-care benefits, a cause promoted by Trump’s daughter Ivanka.
Republicans who slammed the growing national debt under Democrat Barack Obama said Tuesday they are open to Trump’s tax plan, even though it could add trillions of dollars to the deficit over the next decade.
Echoing the White House, Republicans on Capitol Hill argued that tax cuts would spur economic growth, reducing or even eliminating any drop in tax revenue.
“I’m not convinced that cutting taxes is necessarily going to blow a hole in the deficit,” said Sen. Orrin Hatch, R-Utah, chairman of the Finance Committee.
“I actually believe it could stimulate the economy and get the economy moving,” Hatch added. “Now, whether 15 percent is the right figure or not, that’s a matter to be determined.”