New Delhi, April 27: In an effort to fulfill his election promises of bringing jobs and prosperity to the American middle class, President of the United States Donald Trump is proposing tax cuts, which is being considered as “the biggest tax cut” ever even as the government is struggling with mounting debt.
As per PTI, White House officials were expected to release broad outlines of a tax overhaul that would apparently provide massive tax cuts to businesses, no matter, big and small. Reports claim that an official with knowledge of the plan said that the top tax rate for individuals would drop by a few percentage points, from 39.6 per cent to the “mid-30s”.
Steve Mnuchin, Treasury Secretary announced that the proposed overhaul would amount to “the biggest tax cut” and the “largest tax reform” in US history. According to them, small business owners are expected to see their top tax rate go from 39.6 per cent to 15 per cent, Reportedly, the official was not authorised to publicly discuss the proposal before the White House announcement and spoke on condition of anonymity.
White House officials already have said the top corporate tax rate would be reduced from 35 per cent to 15 per cent. The plan will also include many benefits, one of them being child-care benefits promoted by Ivanka Trump.President Trump reportedly sent his team to Capitol Hill on Tuesday to discuss his plan with the Republican leaders.
“They went into some suggestions that are mere suggestions and we’ll go from there,” said GOP Senator Orrin Hatch of Utah, chairman of the Senate Finance Committee.
“The White House’s presentation will be “pretty broad in the principles,” said Marc Short, Trump’s director of legislative affairs.
Short further said that in the coming weeks, Trump will solicit more ideas on how to improve the proposed plan. He also said that the administration did not want to set a firm timeline, after demanding a quick House vote on a health care bill and watching it fail. However, he said he did not see this sliding into 2018
Republicans who slammed the growing national debt under President Barack Obama said that they are open to Trump’s tax plan, even though it could add trillions of dollars to the deficit over the next decade. Like the White House, the Republicans argued that the cuts would spur economic growth, reducing or even eliminating any drop in tax revenue.
(With inputs from agencies)