President sets out his stall on tax reforms – with little to sell

DONALD TRUMP launched his push for a tax overhaul last night with populist promises of tax cuts for the middle class coupled with an end to loopholes used by the super rich, even as opponents said his plan lacked details and was doomed to failure.

“This is a once-in-a-lifetime opportunity to deliver tax reform for hardworking Americans,” said Mr Trump in front of supporters at a factory manufacturing fans and laboratory exhaust systems in Springfield, Missouri.

He laid out the four principles driving his agenda: Simplifying tax rules and removing loopholes used by the rich; ensuring tax laws helped American workers; providing tax relief for the middle class; and attracting back profits held overseas by big companies.

“If we unite in the name of common sense and the name of common good, then we will add millions and millions of new jobs, bring back trillions of dollars and we will give America the competitive advantage it so desperately needs and has been looking for so long,” he said.

He has called for slashing the US corporate tax rate from 35 per cent. “Ideally … we would like to bring our business tax rate down to 15 per cent,” he said, stating that doing so was vital for the country to regain its competitive edge.

In April, the White House said it wanted to reduce personal tax rates to three bands of 10 per cent, 25 per cent

‘We will bring back trillions of dollars and give America the competitive advantage it so desperately needs’

and 34 per cent. But since then, the issue has been handed to Congress for drafting amid reports that the original proposals have been revised.

The result is that there is no plan yet for Mr Trump to sell, even as tax reform takes on even greater importance for a president who has seen much of his legislative agenda stall.

“This is going to be one of the biggest fights of the next three or four months, and Democrats are ready for it,” said Chuck Schumer, who leads the Democrats in the Senate.