GOP ready to propose tax cuts for corporations, the wealthy

WASHINGTON — The White House and congressional Republicans are completing a tax plan that would slash the corporate rate while reducing the levy for the wealthiest Americans, with President Donald Trump ready to roll out the policy proposal at midweek.

The grand plan to rewrite the nation’s tax code would be the first major overhaul in three decades, delivering on a Trump campaign pledge and providing a sorely needed legislative achievement. It also is expected to eliminate or reduce some tax breaks and deductions.

The plan would most likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday.

In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said.

Trump has said he wanted a 15 percent rate for corporations, but House Speaker Paul Ryan has called that impractically low, saying it would add to the soaring $20 trillion national debt.

The White House and congressional leaders planned an all-out blitz later this week to build support for the plan, which is now Trump’s top legislative priority as the GOP has struggled to repeal and replace Democrat Barack Obama’s health care law. The political stakes are high for Trump, who has promised to bring 3 percent economic growth and expanded jobs through tax cuts.

Vice President Mike Pence was expected to hold events in Michigan and Wisconsin on Thursday to promote the tax plan with business leaders.

The plan being assembled lays out “pro-growth tax reform,” Rep. Kevin Brady, R-Texas, head of the tax-writing House Ways and Means Committee, told reporters on Capitol Hill.

Details will be filled in later by the committee, and legislation will be put forward after the House and Senate enact their budget frameworks, Brady said.