Trump says China's business tax rate is 15% - it's actually much higher

Cheryl Sanders
September 17, 2017

Trump's notion that economic growth will pay for most of it is fantasy, and Democrats are not going to sacrifice popular tax deductions such as those for mortgage interest and charitable donations to help pay for tax cuts for the rich.

The White House and GOP leaders plan to reveal new details of their plan to cut corporate and individual taxes the week of September 25, and they are imploring lawmakers to reach a budget agreement that could smooth its passage, a key lawmaker told his colleagues Wednesday morning.

Trump has proposed lowering the corporate tax rate from 35 percent to 15 percent, while House GOP leaders believe a rate in the low- to mid-20s is more politically viable. Trump said then, "if they have to go higher, they'll go higher, frankly". Although the administration has not provided specifics on its plan, House Republicans have embraced an approach that would lower the top individual rate from 39.6 percent to 33 percent, which would be enormously beneficial to the wealthiest Americans.

The White House released a one-page blueprint in April of the tax law changes it wanted to see, which included slashing the corporate tax rate, simplifying the tax brackets that individuals and families face, and eliminating the estate tax and alternative minimum tax, among other things. He's still hoping for a 15-percent rate "because that will bring us", he said, to a level similar to that of China and other countries.

As part of a cascade of tweets Wednesday night, President Donald Trump said one of the major incentives for a tax overhaul, including cuts, was making the USA more competitive with the rest of the world.

House Speaker Paul Ryan declined Wednesday to say the evolving Republican tax cut plan won't add to already mammoth budget deficits.

"But Ryan dismissed the possible deal as preliminary discussions and insisted any agreement must have buy-in from GOP leaders". The goal, which Ryan reiterated Wednesday, is to send Trump a bill to sign before year's end. Leaders plan to unveil some details later this month before handing the legislation off to tax writers on the House Ways and Means Committee.

Still, Reed said: "I am still committed to reducing tax rates across the board". "You'll see where we're going on individual rates".

Democrats have vowed to reject any plan that would offer tax breaks to the wealthy and also oppose the president's call to repeal the estate tax. The Tax Policy Center, a joint effort of the Urban Institute and the Brookings Institution, estimates that the tax cuts Mr. Trump outlined in broad detail this spring would increase the deficit by $7.2 trillion over the first decade.

The long list of difficulties has led some analysts to conclude that Congress is likelier to settle on straightforward tax cuts than on full-blown reform - if it passes anything at all.

"We need tax reform to benefit everyone, to lift people's after-tax incomes", Cruz said.

Other reports by iNewsToday