Chris0nllyn
Well-Known Member
U.S. President Donald Trump on Wednesday proposed slashing tax rates for businesses and on overseas corporate profits returned to the country in a plan greeted as an opening gambit by his fellow Republicans in Congress.
The Trump administration touted the president's blueprint - which also calls for raising standard deductions for individuals, repealing inheritance taxes on estates and simplifying tax returns - as a landmark proposal just days before Trump marks his 100th day in office on Saturday.
Trump's plan would cut the income tax rate paid by public corporations to 15 percent from 35 percent and reduce the top tax rate assessed on pass-through businesses, including small partnerships and sole proprietorships, to 15 percent from 39.6 percent, the White House said.
Mnuchin also said that Trump was proposing that corporations bring offshore profits into the country at a rate well below the current 35 percent rate. He did not say what that rate would be, but said that the administration was working with Congress on a low rate.
About $2.6 trillion in profits are being held tax-exempt abroad by U.S. multinationals under a rule that says they are only taxable if brought into the United States, or repatriated. Trump proposes requiring repatriation, but at the lower rate.
Democrats and fiscal-hawk Republicans will be concerned about how much Trump's proposals would cause the deficit to balloon. To minimize that impact, Republicans will rely heavily on "dynamic scoring." This is a controversial economic modeling method that attempts to predict economic growth and new tax revenues resulting from tax cuts.
The Retail Industry Leaders Association, comprised of some of the nation's largest retailers, including Wal-Mart Stores Inc (WMT.N), Target Corp (TGT.N) and Best Buy Co Inc (BBY.N), praised Trump's call for a lower tax rate and reiterated opposition to the idea of the border adjustment tax.
http://www.reuters.com/article/us-usa-tax-idUSKBN17S1CE