U.S.: Trump Administration proposes slashing business taxes

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U.S.: Trump Administration proposes slashing business taxes

The Trump Administration has proposed what it describes as the most sweeping tax reform in decades, in order to make U.S. businesses "the most competitive in the world". 

Treasury Secretary Steven Mnuchin (left) and National Economic Council director Gary Cohn

Unveiling the plans, National Economic Council director Gary Cohn and Treasury Secretary Steven Mnuchin said corporate tax would be slashed to 15%.

Mnuchin also pledged that small and medium-sized firmed would benefit, not just big business.

Cohn explained the last significant corporate tax reform in the U.S. dated back to 1986 and the current system was based on legislation from well before then.

"We are going to cut taxes for businesses to make them competitive and we are going to cut taxes for the American people," Cohn said.

He said the finer details would be announced at a later date, highlighting the reform package was "about growing the economy and creating jobs".

During the White House briefing there was no mention of the so-called border adjustment tax, which President Donald Trump suggested implementing on Mexican goods in January.

He had said a 20% import tax on Mexican goods could be applied to help pay for the proposed border wall between the two countries. 

"This [package] will pay for itself with extra growth, and by reducing tax deductions and closing loopholes," Mnuchin said, adding he believed 3% annual economic growth could be achieved.

Asked whether there was a danger Republicans wouldn't support the package, as with Trump's healthcare reforms, the Treasury Secretary said there was "a lot of desire from everyone" to reform the tax system.


Photo: Corrynmb, via Twitter


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