President Donald Trump on Wednesday is expected to roll out a tax plan that proposes to slash corporate taxes and tweak personal tax rates but that excludes a tax on imports favored by some congressional Republicans.
While the plan is expected to contain broad outlines rather than firm legislative text, Treasury Secretary Steven Mnuchin said during a speech Wednesday that the plan would include "the biggest tax cut" in US history, echoing statements made by Trump.
While Mnuchin did not apply a deadline to passing a tax plan, he told an event hosted by The Hill that the White House and congressional leaders wanted to pass a bill "as quickly as possible."
The official announcement is expected later Wednesday during the White House press briefing. Mnuchin confirmed numerous details during his speech Wednesday morning, however, and a report from The New York Times, citing multiple sources close to the plan, further detailed what was expected to be announced.
Here are the key points that are expected to be in the bill:
- Corporate tax rate of 15%: Such a rate would deliver on Trump's campaign promise; the current federal statutory rate is 35%.
- Allows pass-through rate for business owners: Instead of self-owned businesses being taxed at the personal income rate, business owners would have incomes from operations taxed at the 15% rate. So if you own your own business, income from that business would be taxed at the corporate rate. According to The Times, that could apply to the Trump Organization.
- No border-adjustment tax: The tax on imports was favored by House GOP leaders such as Speaker Paul Ryan and Kevin Brady, the chair of the Ways and Means Committee. Mnuchin said the White House talked to Ryan and Brady but thought the tax did not "work in its current form."
- A slight adjustment to individual tax rates: Mnuchin said the top income-tax rate would be in the "mid-30s," down from its current 39.6% level. According to a rport from Bllomberg, White House officals said there will be three tax brackets with rates of 35%, 25%, and 10%.
- A change in tax exemptions for the middle class: According to The Times, the plan will propose an increase in the standard deduction for individuals.
- No infrastructure spending: Reports on Tuesday said Trump was considering including infrastructure spending in the plan to try to win over Democrats. Mnuchin denied the report in the speech, saying the proposal would be "just a tax plan."
Mnuchin said the bill would be paid for through economic growth. This uses a formula called dynamic scoring, which uses assumptions that gross domestic product will grow because of increased spending to make up revenue that is cut in the tax bill. The Treasury secretary told the crowd Wednesday that he expected sustained annual GDP growth of 3%.
The White House press briefing, with a formal announcement, is scheduled to take place at 1:30 p.m. ET.
Join the conversation about this story »
NOW WATCH: Watch Trump walk out of an executive-order signing ceremony without signing any orders