President Donald Trump is expected to propose slashing the corporate tax rate to 15 percent on Wednesday, as the White House unveils its first stab at a tax plan, according to two sources familiar with the administration’s deliberations.
Cutting the corporate rate to such a low level would allow Trump to follow through on a campaign promise that has been months in the making – even if policy experts argue that getting to that rate is impossible to do without imposing a new levy like a consumption tax, or blowing a hole in the deficit. Trump has been saying since early February that the administration’s release of a tax plan was just weeks away.
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A tax cut to 15 percent for corporations is likely to receive a mixed reaction from Congress, which must approve any overhaul of the tax code. Some Republican lawmakers will be thrilled to bring the corporate rate that low as a nod to helping businesses, while others will worry about the proposal’s potential to add to the deficit. Senate Finance Committee Chairman Orrin Hatch (R-Utah) said Monday that a cut to 15 percent could be hard to achieve.
A senior administration official acknowledged that the proposal to cut the rate to 15 percent is just a starting point in negotiations and would likely end up being higher in any final plan approved by…
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