Report: Trump to propose cutting corporate tax rate to 15 percent
On Wednesday, President Trump will announce his plan to overhaul the tax code, including a proposal to cut the corporate tax rate to 15 percent from 35 percent, White House officials told The Washington Post on Monday.
Independent analysts have estimated a cut this severe could cost the federal government $2.4 trillion over 10 years, and it's a deeper cut than one House Republicans have proposed. Treasury Secretary Steven Mnuchin said Monday that such a tax plan "will pay for itself with economic growth," but Edward Kleinbard, the former chief of staff for Congress' Joint Committee on Taxation, told the Post that if Trump's administration is "going to rely on the principle that tax cuts can pay for themselves, history has demonstrated that tax policies move the growth needle a bit but no more than that."
Most companies do not pay the 35 percent rate because of deductions, and these changes will have to be backed by Congress with bipartisan support in order to pass. During his speech, Trump is expected to discuss changes to personal income tax as well.
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Catherine Garcia is night editor for TheWeek.com. Her writing and reporting has appeared in Entertainment Weekly and EW.com, The New York Times, The Book of Jezebel, and other publications. A Southern California native, Catherine is a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
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