Washington, Apr 26 (EFE).- Treasury Secretary Steven Mnuchin on Wednesday outlined President Donald Trump’s tax overhaul plan, which calls for slashing the corporate tax rate from 35 percent to 15 percent.
Under the plan, the number of tax brackets for individuals also would be reduced from seven to three (10 percent, 25 percent and 35 percent).
The overhaul will be “the most significant tax reform legislation since 1986 and one of the biggest tax cuts in American history,” Mnuchin said in a press briefing at the White House in which National Economic Council Director Gary Cohn also spoke.
Mnuchin added that the plan would enable the United States economy to grow at an annual clip of 3 percent or more.
The plan delivered to reporters is just one page long and lists several basic principles that will need to be expanded upon at a later date.
The treasury secretary said other key elements of Trump’s plan were proposals to repeal the estate tax and institute changes that would help families with child and dependent care expenses.
It also will include a one-time repatriation tax on corporate profits held overseas, a measure aimed at enticing companies to bring trillions of dollars back to the US.
Mnuchin said that rate would be very competitive but did not provide even a ballpark figure.
Addressing concerns that the slashing of the corporate tax rate would cause deficits to skyrocket even further, the treasury secretary said Trump’s plan would pay for itself through the higher growth it generates.
He also said the plan would reduce some deductions and close loopholes.
Trump has said tax reform is one of the main priorities of his first year in office, although his plan will have to be converted into a bill that is approved by the Republican-controlled Congress, where sharp opposition can be expected from both the GOP and Democrats.
Some Republicans say the plan would cause a further sharp rise in the national debt, while Democrats say it would benefit the wealthy.
“If the president’s plan is to give a massive tax break to the very wealthy in this country – a plan that will mostly benefit people and businesses like President Trump’s – that won’t pass muster with we Democrats,” Senate Minority Leader Chuck Schumer said.