President Trump: Biggest Set of Tax Cuts Ever
On Wednesday morning, President Donald Trump is set to reveal the basic framework of what he has said is the biggest set of tax cuts ever in the United States. According to reports, President Trump wants to lower the corporate tax rate from 35% to 15%, while he also wants to top marginal personal tax rate to drop from 39.6% to 33%. In additional, all of the other tax brackets would likely be set to drop as well.
The stock market has cheered this news, as a massive cut in the corporate tax rate would obviously be a very big positive for companies all across the country.
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President Trump is looking to push through his first big piece of legislation since his inauguration in January.
The first attempt at repealing Obamacare ended in disaster for President Trump, so he has now set his sights on tax cuts. That being said, President Trump is going to have a very hard time getting his aggressive set of tax cuts passed through Congress, as nearly all Democrats have come out to pan the rumored proposal.
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There are worries that the planned tax cuts, should they go through, would result in the country posting even larger deficits.
The Trump Administration, on the other hand, is arguing that the tax cuts would pay for themselves through a large boost in economic growth.
Many experts, however, believe otherwise - Alan Cole of the Tax Foundation, for instance, has said that there is "no pure tax cut that pays for itself". The Trump Administration believes otherwise and is setting themselves up for another big fight against both the Democrats and members of their own party.
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President Trump still largely has the support of the people who voted him into office in November of 2016, though a big win on tax cuts would surely give him some much needed positive momentum.
Source: CBC.ca - Trump plans to slash U.S. corporate tax rate to 15%
Photo: Gage Skidmore
Filed under: General Knowledge
