Trump's tax duo to brief senior U.S. Congress leaders on plan

Adjust Comment Print

Center for American Progress's Vice President of Early Childhood Policy Katie Hamm explains that she'd always meant to delve into Trump's proposed tax plan, but added that she chose to look at these counties in particular after reading a story on Inauguration Day that polled Trump voters on their hopes for the new administration. Some lawmakers have expressed concerns that Trump's call for a big corporate tax cut would balloon the almost $20 trillion in long-term debt the USA has accumulated if there are not corresponding measures to raise more revenue.

The top tax rate for individuals would be cut from 39.6 percent to the "mid-30s", the official said.

White House spokesman Sean Spicer said the US has been "uncompetitive" against other countries in attracting new businesses, "largely because of our rates".

The 5 percentage-point difference might not sound like much, but it amounts to billions in lost revenue that could make it harder for Republicans to overhaul taxes for the first time since Ronald Reagan's presidency.

USA lawmakers have for years vowed to adopt broad tax reforms, but the efforts have foundered.

More news: Mel B is being sued by former nanny for defamation

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 a year ago. During the campaign, Trump proposed raising it to $15,000 for single-filers.

Trump is planning to announce a tax plan on Wednesday, though it is expected to be more of an outline and not rich in detail. Senate Republicans have panned the idea, and officials in the Trump administration have sent mixed signals about it.

A pass-through isn't taxed under the corporate code.

"[But] I'm not sure we can get them down that low", Hatch said when asked about the proposed rate.

Simply by releasing a plan Trump is demonstrating that he is "interested, engaged" and even if it does not match the House plan, it will spark further discussions, the lobbyist said.

More news: Entire US Senate to go to White House for North Korea briefing

Mnuchin has said the cuts will pay for themselves by generating more economic growth but fiscal hawks, potentially some in Trump's own Republican Party, along with Democrats, are certain to question these claims.

The senior White House official said Trump would like to see Congress pass tax reform by the middle of autumn.

According to what two people briefed on the plan told the Washington Post, the president is expected to put forth a proposal on his 97th day in office that includes a deduction standard that is significantly higher than the $6,300 it is now for individuals. But it has faced significant opposition, especially from retailers who warned it would increase the cost for clothing, toys and other goods predominantly made overseas, and Trump has argued it was too complicated.

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 US for infrastructure.

"As a country we shouldn't accept a tax code that a favors foreign workers and foreign products over American workers and American products", he said.

More news: United Nations chief says Yemen aid conference draws $1.1B in pledges