[Updated to include official tax reform plan revealed Wedensday afternoon]
Treasury Secretary Steven Mnuchin confirmed that the Trump administration tax plan will call for a 15% corporate rate, according to an article in CNBC by Jacob Pramuk.
Mnuchin and White House chief economic advisor Gary Cohn gave more details about the plan later in the day on Wednesday, the article stated.
From the article:
At an event hosted by The Hill, Mnuchin — who declined to go into many specifics about the proposal — contended it would be "the biggest tax cut and the largest tax reform in the history of our country."
When Trump floated a 15 percent corporate tax rate as a candidate, analyses of the proposal estimated that it could add atrillions to the national debt. It is unclear what the current proposal would do to raise revenue to offset those major cuts, and Mnuchin declined to say Wednesday how specifically the administration would pay for the 15% rate.
The exact details on President Donald Trump’s tax reform are were scarce leading up to the reveal, but Mnuchin has said in the past that the mortgage interest tax deduction will not be changed.
The tax deduction was brought up as an issue this past election season when House Republicans proposed tax reform that would make the mortgage-interest tax deduction irrelevant for most Americans.
Here are highlights from the tax reform plan Cohn and Steven revealed in a briefing to reporters at the White House Wednesday afternoon, according to a follow-up piece from CNBC.
- Trump's plan will cut the number of income tax brackets from seven to three, with a top rate of 35% and lower rates of 25% and 10%. It is not clear what income ranges will fall under those brackets.
- The proposal will chop the corporate tax rate to 15% from 35%.
- It would eliminate all tax deductions except for the mortgage and charitable contribution deductions