A Republican tax package expected to drop this week will include broad income and corporate tax cuts, making it difficult for President Donald Trump to follow through on his promise to hit the rich the hardest, The Washington Post reported.
The emerging framework includes a proposal to cut the corporate tax rate to 20 percent from 35 percent, which will significantly reduce the country's revenue, but Trump and Republicans insist it is necessary for job growth.
The plan will condense individual tax brackets from seven to three, with the highest rate at 35 percent. The plan also creates a 25 percent rate for business owners. Such changes would significantly slash taxes for the top 1 percent of earners, according to Bloomberg.
Trump has been determined to cut taxes for corporations.
“We'll see what happens, but I hope it's going to be 15 percent,” he told reporters last week. “But it's going to be substantially lower so we bring jobs back to the country.”
As far as individual rates, Trump said he would like to bring those down for the middle class.
"We think we're going to bring the individual rate to 10 percent or 12 percent, much lower than it is now," he told reporters. "This is a plan for the middle class and for companies so they can bring back jobs."
The package is also expected to eliminate the estate tax, Bloomberg reported, which will remove another revenue stream for the government.
"I don't have a good way to thread the needle between the president's promises and where they are," Republican economist Doug Holtz-Eakin told Bloomberg.
Shares