Washington, April 26 (IANS) US President Donald Trump on Wednesday planned to propose steep cuts in corporate taxes and repatriated offshore corporate profits as the administration seeks to regain momentum on economic policies.
“We’ll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago, but it really formally begins on Wednesday,” the President said earlier this week.
A senior Treasury staffer told CNBC that Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn were set to conduct a joint news conference later on Wednesday from the White House Briefing Room.
Trump has told aides to cut the income tax rate for public companies from 35 per cent to 15 per cent, according to reports.
An administration official said Trump would propose a repatriation tax on offshore earnings of 10 per cent, compared with the current 35 per cent, the report said.
The official also said the plan would cut the top tax rate on “pass-through” businesses, which include small business partnerships, sole proprietorships and hedge funds, from 39.6 per cent to to 15 per cent, media reports said.
The plan wasn’t expected to include a “border-adjustment” tax on imports, which had proved controversial.
It is not entirely clear how much the plan will differ from the proposal Trump outlined as a candidate, or the plan that House Speaker Paul Ryan has backed, CNBC reported.
As a presidential candidate, Trump promised to slash income-tax rates across the board while lowering corporate taxes from 35 per cent to 15 per cent.
He said at that time that his proposal would boost economic growth and help companies to create jobs.