Trump plans to slash corporate tax rates sharply

This article is more than 12 months old

WASHINGTON US President Donald Trump is expected to release a tax plan stating broad principles and proposing some deep cuts, mostly for businesses, officials said.

Mr Trump intends for his blueprint, which will fall short of the kind of comprehensive tax reform that Republicans have long discussed, to be a guidepost for lawmakers in the US House of Representatives and Senate.

"We're driving this a little bit more," a senior White House official told a group of reporters yesterday.

The plan is not expected by analysts to include any proposals for raising new revenue, potentially adding billions of dollars to the federal deficit.

Mr Trump sent Treasury Secretary Steve Mnuchin and National Economic Council Director Gary Cohn to Capitol Hill on Tuesday to brief lawmakers on the plan.

Mr Trump directed aides to cut the income tax rate paid by public corporations to 15 per cent from 35 per cent, another administration official said.

The second official also said Mr Trump planned to propose a repatriation tax on offshore earnings along the lines of his campaign proposal for a 10 per cent levy, versus the 35 per cent due on repatriated foreign profits under present law.

The plan also will include a sharp cut in the top tax rate on pass-through businesses, including many small business partnerships and sole proprietorships, to 15 per cent from 39.6 per cent, the official said. - REUTERS

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