Republicans aim to cut top rate to 35% from 39.6%
No one in history has campaigned on a tax cut for the rich, but it always seems to find its way into the deal.
Axios reports on some of the details of Trump’s tax reform plan, which is slated to be unveiled this week. The cut in the top bracket will get the most attention, because it’s entirely against what Trump built his campaign on, but for the economy and markets, the details or small business and corporate tax reform will be huge.
The corporate rate will be lowered to 20% from 35%. The current rate is so full of loopholes that few companies pay it but getting it down to 20% would be a genuine cut for most of the S&P 500.
There is also a plan to cut the small business pass-through rate to 25% from 39.6%.
Still unknown is what taxes will go up to help pay for it, or what will happen to the deficit.
And most importantly, will it get the votes?