Corporate tax rates are on the chopping block with the unveiling of President Trump's new plan. This plan is one of the last things President Trump wants to get done during his first 100 days, just has he promised his supporters. But what does this mean for companies going forward? And how might this affect not only the government, but the American people?
Tell me how.
Currently, the government requires corporations in the United States to given them 35% of their profits. But, being a business man himself, Trump Believes that percentage is too high.
He believes this high take rate makes companies not want to place their headquarters in the US, denying Americans jobs, and that they slow down economic growth. He promised last year during his campaign to cut 15% from corporate Tax Rates if elected, and now we've reached the point where that could be a possibility.
How are people reacting?
While cutting tax for corporation will benefit them is also means less money for the government. Some Democrats are arguing that this will take valuable money away from social programs that benefit many families in the United States. And republicans are planing a compromise between Trump and the Democrats, claiming that the tax should be around 20%. They want to keep some money in the government to help with the US's rising debt.
Trump's goal is to have the plan out by tomorrow.
What else should I know?
There are some questions surfacing about the government's involvement with some of Trump's businesses. Yesterday, the State Department took down a webpage on a government website that talked about Trump's Mar-A-Lago resort that came out early this month.
The State Department claimed the webpage was posted in order to give the public more information about whee Trump was holding some recent VIP meetings. However, ethics professionals say that it looks like the US government is promoting Trump's businesses.
What's the bad news?
With Trump's first 100 days as President coming to a close, cutting corporate taxes is at the top of Trump's to-do list.
While Trump is planing on slashing these taxes, it comes at an inconvenient time for Congress, who are currently trying to pass a budget that will help avoid another government shutdown. After the last government shutdown in 2013 this is definitely something Congress, and President Trump, would like to avoid this time around if they can help it.
