President Donald Trump's proposed tax plan will cut the corporate tax rate to 15 percent, the Wall Street Journal reported.
Trump told his White House aides in an Oval Office meeting last week that he wants to cut taxes, even if it means adding to the deficit. Trump advised aides to have a tax reform plan ready to be released on Wednesday.
White House and congressional leaders will meet Tuesday to discuss Trump's tax reform plans. The meeting will include Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Majority Leader Mitch McConnell (R., Ky.), Speaker of the House Paul Ryan (R., Wis.), Senate Finance Chairman Orrin Hatch (R., Utah), and House Ways and Means Chairman Kevin Brady (R., Texas).
Trump is following up on his campaign promise to cut corporate tax rates to 15 percent, a lower figure than the 20 percent rate proposed by House Republicans and the 28 percent rate proposed by former President Barack Obama.
"Asked Monday if the president's tax plan would be revenue-neutral, meaning it wouldn't add to the debt, Mr. Mnuchin told reporters that it would 'pay for itself with economic growth,'" the Journal reported. "By that, he meant that the administration expects to be able to project faster growth due to tax cuts, which would in turn increase revenue and avert the risk of bigger budget deficits."
Tomorrow's announcement likely will focus on broad tax reform principles such as changes to individual tax rates.
"Mr. Trump has said he wants to reduce the number of brackets for individual payers and to deliver tax cuts to the middle class," the article said. "So far, Mr. Trump is sticking with core elements of his campaign tax plan, showing no signs of molding political promises to legislative dynamics in Congress or any significant fiscal constraints."