left right U.S. President Donald Trump (L) greets Treasury Secretary Steven Mnuchin during an event to sign financial services executive orders at the Treasury Department in Washington, U.S., April 21, 2017. REUTERS/Kevin Lamarque 1/2 left right National Economic Council Director Gary Cohn speaks at 2017 Institute of International Finance (IIF) policy summit in Washington, U.S., April 20, 2017. REUTERS/Yuri Gripas 2/2 By Amanda Becker and Steve Holland | WASHINGTON
WASHINGTON U.S. President Donald Trump on Wednesday will propose slashing corporate income tax rates and steeply discounting the tax rate on overseas corporate profits brought into the United States in a broad blueprint outlining his administration's tax principles, officials said.
Trump intends his plan, which will include some specific tax-cut proposals but fall short of the kind of comprehensive tax reform that Republicans have long discussed, to be a guidepost for lawmakers in the U.S. House of Representatives and Senate.
"We're driving this a little bit more," a senior White House official told a group of reporters late on Tuesday.
Trump has directed aides to cut the income tax rate paid by public corporations to 15 percent from 35 percent, another administration official said.
The second official also said Trump planned to propose a repatriation tax on offshore earnings along the lines of his campaign proposal for a 10 percent levy, versus the 35 percent due on repatriated foreign profits under present law.
The plan also will include a sharp cut in the top tax rate on pass-through businesses, including many small business partnerships and sole proprietorships, to 15 percent from 39.6 percent, the official said.
Trump's proposal will not include a controversial "border-adjustment" tax on imports that was in earlier proposals floated by House Republicans as a way to offset revenue losses resulting from tax cuts.
Treasury Secretary Steven Mnuchin has said Trump's tax plan will pay for itself by stimulating economic growth.
(Additional reporting Richard Cowan and Ginger Gibson; Editing by Kevin Drawbaugh and Bill Trott)