Otago Daily Times

TRUMP WANTS TAX CUTS

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WASHINGTON: US President Donald Trump today will propose slashing corporate income tax rates and steeply discountin­g the tax rate on overseas corporate profits brought into the United States in a broad blueprint outlining his administra­tion’s tax principles, officials said.

Mr Trump intends his plan, which will include some specific taxcut proposals but fall short of the kind of comprehens­ive tax reform that Republican­s have long discussed, to be a guidepost for lawmakers in the US House of Representa­tives and Senate.

‘‘We’re driving this a little bit more,’’ a senior White House official told a group of reporters yesterday.

Mr Trump has directed aides to cut the income tax rate paid by public corporatio­ns to 15% from 35%, another administra­tion official said.

The second official also said Mr Trump planned to propose a repatriati­on tax on offshore earnings along the lines of his campaign proposal for a 10% levy, versus the 35% due on repatriate­d foreign profits under present law.

The plan also will include a sharp cut in the top tax rate on passthroug­h businesses, including many small business partnershi­ps and sole proprietor­ships, to 15% from 39.6%, the official said.

Mr Trump’s proposal will not include a controvers­ial ‘‘border-adjustment’’ tax on imports that was in earlier proposals floated by House Republican­s as a way to offset revenue losses.

Treasury Secretary Steven Mnuchin has said the president’s tax plan will pay for itself by stimulatin­g economic growth.

 ?? PHOTO: REUTERS ?? Tax slash . . . United States President Donald Trump plans sweeping changes to tax rates.
PHOTO: REUTERS Tax slash . . . United States President Donald Trump plans sweeping changes to tax rates.

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