Trump promises giant tax cut as Christmas gift

Corporate tax rate may be slashed to 21% in new law

Washington, Dec. 14: US President Donald Trump has promised a giant tax cut for Americans as a Christmas gift that he said would deliver more jobs and higher wages.

C o n g r e s s i o n a l Republicans reached a deal on Wednesday on final tax legislation, clearing the way for final votes on it next week.

Mr Trump recognised the tax reform as a campaign promise during his run- up to the 2016 presidential election, saying the “giant tax cut” will be his “Christmas gift” to fellow countrymen.

“Now we’re just days away ... from keeping that promise and delivering a truly amazing victory for American families. We want to give you, the American people, a giant tax cut for Christmas,” Trump told a select audience at the White House as he delivered an address to the nation making a final pitch for his massive tax reform.

“As we speak, Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages, and massive tax relief for American families .. he said.

Republican leaders in Congress have been hammering out deal for a projected, $ 1.5 trillion compromise plan.

Both chambers have passed tax bills, but they now have to blend them into a final piece of legislation.

Mr Trump cited an example to explain the impact of the tax cut, “The typical family of four earning $ 75,000 will see an income tax cut of more than $ 2,000, slashing their tax bill in half.”

It nearly doubles the amount of income taxed at the rate of zero, he said, adding that the proposed tax reforms also closes special interest loopholes; and lowers tax rates for families. It cuts taxes on businesses, which is expected to raise income by an average of more than $ 4,000, he said.

Two Republican sources confirmed to NBC News that the corporate tax rate would be cut to 21 per cent, while the top tax rate for individuals would drop to 37 per cent from 39.6 per cent.