Friday 15 November 2019

Trump pledges 'historic tax relief', including lowering of corporation tax

  • Corporate tax rate to be reduced to 20pc
  • Three individual tax brackets with rates of 12pc, 25pc and 35pc
  • Recommended surcharge on the very wealthy
President Donald Trump unveiled plans for a tax overhaul
President Donald Trump unveiled plans for a tax overhaul

Ken Thomas

President Donald Trump has promised "historic tax relief to the American people" as he tried to build support for his plan to overhaul the US tax system.

Hours after the White House and congressional Republicans released a framework for making sweeping changes to the tax code, the president told hundreds of supporters at the Indiana State Fairgrounds the plan was "a once-in-a-generation opportunity".

"This is a revolutionary change and the biggest winners will be everyday American workers as jobs start pouring into our country as companies start competing for American labour," he said.

Passing the tax plan has become critical for a president desperate for a win.

The first year of his administration has been stymied by internal chaos and stinging defeats in his attempt to repeal and replace former president Barack Obama's healthcare law.

Short of votes, Senate Republicans announced on Tuesday that they would not vote on the latest healthcare proposal.

Hours later, Mr Trump watched as Senator Luther Strange, his preferred candidate in an Alabama Senate run-off, was soundly defeated by conservative Roy Moore.

The tax plan seeks to slash the corporate rate from 35pc to 20pc and create three individual tax brackets with rates of 12pc, 25pc and 35pc, with a recommended surcharge on the very wealthy.

Mr Trump also wants to simplify the tax code to allow the majority of Americans to file on a single sheet of paper.

He arrived in Indiana aboard Air Force One with Indiana Senator Joe Donnelly, who is among the most endangered Senate Democrats facing re-election in 2018.

Mr Donnelly has expressed openness to the tax overhaul, citing the need for it to reward companies that keep jobs in the US and penalise those engaging in offshoring.

Mr Trump issued a warning shot to Donnelly from the stage, urging him to support the tax overhaul.

"If Senator Donnelly doesn't approve it - because you know he's on the other side - we will come here and we will campaign against him like you wouldn't believe," Mr Trump said.

Still, he predicted that "numerous Democrats" would come across the aisle to support the plan because "it's the right thing to do".

The president has made similar overtures to Democratic senators like Claire McCaskill of Missouri and Heidi Heitkamp of North Dakota in recent weeks. All three are facing re-election in 2018.

Online Editors

Today's news headlines, directly to your inbox every morning.

Editors Choice

Also in World News