One of the most consistent promises the President has made was that he would slash corporate taxes to 15%. Unfortunately, Republicans seem to be backing out of that as they finish their new tax code.
House Speaker Paul Ryan recently addressed The New York Times and stated that the “goal” for corporate taxes was going to sit in the mid- to low 20s:
“The numbers are hard to make that work. He obviously wants to push this as low as possible, and I completely support that, but at the end of the day, we got to make these numbers work. I think our goal is to be at or below the industrial world average, and that’s 22.5%. So our goal is to get in the mid- to low 20s.”
Trump’s original plan stated that “no business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes.” Trump’s one-page statement of principles from the White House also stated that the corporate rate would be 15%.
Congressional and White House staffers recently realized that if their plan worked, they would need to raise the corporate rate to avoid killing the deficit. In the form of confirmation, Trump’s top economic adviser, Gary Cohn, wouldn’t guarantee a 15% rate in an interview with Financial Times. Instead, he said the President wants the rates “as low as possible.”
Trump himself seemed to soften on his tax reform during his visit to North Dakota saying the following:
“And we will cut the business tax rate as much as possible. Ideally, we would like to bring our business tax rate down to around 15%. That’s a tremendous drop.”
Credit: Business Insider