The Cut in Tax Being Cut

The president of the United States has promised US citizens the largest tax cut in the history but the moment he hit the roads for the promotion of the plan, the Republicans in the Congress were discussing quietly scaling back the key provisions in an effort to deliver it to the top White House priority. There is already talk that the base of the proposal of the GOP which is a dramatic reduction in the corporate tax rate by 20 percent which has been referred to as a red line by the US president, Donald Trump may slip to around 22 or 23 percent. This is as per the ones who are quite familiar with the negotiations happening with the cut in the tax rate.

Donald Trump had originally promised a tax rate of 15 percent for corporations. But on the other hand, the Republicans are running into opposition from lawmakers and lobbyists who want to preserve deductions and the loopholes that were aimed for elimination under the plan of the White House to nullify the huge corporate tax rate cut from the currently prevailing rate of 35 percent. There are also a number of Republicans who are opposing other parts of the plan from the president. Some include; discarding the estate tax and the elimination of deductions for state & the local taxes. This would hurt the residents in the areas of high tax like New York and California.

President, Donald Trump at an evening rally in Harrisburg, PA said that the rate of the corporate tax would be no more than 20 percent. On the other hand, earlier this week, he acknowledged the fact that changes may come about. He said that there will be some adjustment in the next weeks to come so that the plan can be made even stronger. The negotiators are of the viewpoint that some changes will be required if the Republicans happen to lose only two votes in the Senate and about twenty votes in the House.

Moreover, if none of the Democrats join in for the support of this plan they can hope to avoid another embarrassing defeat similar to the collapse of their repeal to the Obamacare plan. The fiscally conservative Republicans will be the hardest to defeat because the GOP tax plan has been estimated by some other outside groups to add more than two trillion dollars to the deficit for the last ten years.

January 16, 2022 - 18:21
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