Trump expected to unveil tax-cut plan tomorrow

WASHINGTON — The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the penalty for the wealthiest Americans, with President Trump ready to roll out the policy proposal tomorrow.

It would be the first major tax code 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 likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, sources said yesterday.

The top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simplify the tax system by reducing the number of income tax brackets from seven to three.

Trump has said he wanted to see a 15 percent rate for corporations, but House Speaker Paul Ryan has said that is too low and risks adding 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 Obamacare. The political stakes are high for Trump, who has promised to bring 3 percent economic growth and expanded jobs through tax cuts.

Republicans are divided over the potential elimination of some of the deductions, underscoring the difficulty of overhauling the tax code even with GOP control of the House and Senate.