Trump to propose massive tax cuts for businesses

Some analysts viewed the White House plan, likely to fall well short of a full-scale tax reform, as reducing prospects for a thorough tax code overhaul in 2017.

The move would mean more than halving the tax rate, a radical shake-up in the U.S. tax system, but Mr Trump is likely to face resistance in Congress where Republicans are wary of any measure that might increase the deficit. They are expected to meet with Senate Majority Leader Mitch McConnell, R-Ky., House Speaker Paul Ryan, R-Wis., Senate Finance Committee Chairman Orrin Hatch, R-Utah, and House Ways and Means Committee Chairman Kevin Brady, R-Texas.

Asked about the possibility of a 15 percent corporate tax rate in the Trump plan, Douglas Holtz-Eakin, president of the conservative American Action Forum, said "it's hard to say in isolation".

Although he did not disclose details, Treasury Secretary Steven Mnuchin said Monday the lower tax rates would generate so much economic growth that it would hold the deficit in check. In the absence of any direct revenue enhancers, Trump's advisers are relying on faster economic growth to boost tax receipts and prevent the budget deficit from ballooning.

Mnuchin also notes that Americans-individuals and businesses alike-spend more than six billion hours doing their complicated taxes every single year.

Mnuchin also said the Trump administration would lay out plans to cut middle income tax rates, simplify the tax code and make USA companies more competitive with foreign ones. But his tax cuts could wind up increasing it even more.

"I'm less focused on the month than on the year for tax reform, which will be this year", Brady said. "I'm going to look for a couple of things-is this just tax cuts or it is this tax reform, something structural that deals with the problems we have in the tax code, moving from a worldwide to territorial base?" he said.

The border-adjusted tax is a centerpiece of the House GOP plan because it's estimated to raise $1.1 trillion over a decade, helping to pay for individual and corporate tax cuts. First, that Congress refuse to consider tax-rate revision until Trump releases his returns for the last decade.

The border adjustment tax, which favors exports over imports, has proven divisive.

Donald Trump is expected to include child care welfare credits in his tax reform plans to win support from Democrats as he scrambles to turn his campaign pledge into law. Bear in mind that about 45 percent of USA households pay no federal income tax whatsoever, either because they don't have sufficient income or because their mortgage interest and other tax breaks eliminate their tax liability. During the campaign, Trump proposed raising it to $15,000 for single-filers.

Let's circle back to our coverage from several years ago, when Obama proposed lowering corporate tax rates to 28%. He said an active push by the White House is critical to success: "I think they're behind schedule, honestly, but they're not too late".

The JCT analysis concluded that a cut, to 20%, put in place for only three years would result in a "nonnegligible revenue loss in the tax years immediately following the budget window".

A senior administration official told CNBC that President Donald Trump is expected to unveil a tax plan on Wednesday that includes a slew of provisions including one that is created to balance out cuts in the plan.

"Today's Democratic Party seems to me to be preoccupied with wealth transfer from those who have done well to those who have done less well", he said.

The move will come with the 100-day mark of Trump's young presidency fast approaching and Congress working to pass spending legislation to avoid a government shutdown Friday night.