How much your taxes will decrease: Trump announced the details of the tax plan

As for corporate tax, they now make up 35% and are the highest among industrialized countries. Therefore, Trump plans to reduce the rate from 35% to 15% for all companies.

Predictably, Congress will articulate Trump’s corporate tax reduction plan, which some analysts say could increase US long-term debt, already $ 10 trillion, by another $ 20 trillion over the next 2 years.

Some Republicans have expressed concern that the Trump plan does not provide for any new measures to attract funds to the treasury to compensate for the losses associated with tax cuts.

During the election campaign, Trump criticized his predecessor Barack Obama for the annual excess of expenditure over income, increasing the national debt, but now, apparently, this question does not bother him. As Mnuchin said this week, tax reform will pay off thanks to economic growth, which will lead to an increase in government revenue. Many economists dispute this view.

The congress is likely to discuss Trump’s plan for months, but the president has already enlisted one ally in the upcoming battle over tax policy. The leader of the Republican majority in the House of Representatives, Paul Ryan, expressed support for the president’s proposal.

“We really like this offer, it brings together our positions. We agree on 80%, and on the remaining 20% we think in approximately the same way, ”Ryan said.

According to Mnuchin, corporate tax cuts are intended to spur US economic growth, reaching a steady 3%. Last year, growth was only 1,6%. There has been no three percent annual growth in the United States since 2005, even after the country recovered from the recession of 2008-2009.

A spokesman for the White House, Sean Spicer, said that the US is losing competition with other countries in attracting new businesses “mainly because of high taxes.

US lawmakers have long promised to reform the tax system. Until now, their efforts have been in vain, since they could not find a compromise between the multidirectional demands to abolish tax breaks for some corporations and individuals and to increase taxes for others. Many Republicans in Congress have their own ideas on how to reform the US tax code.

According to tax experts, corporation tax in the United States is the highest among 35 industrialized countries, although in fact American companies rarely pay taxes at the 35% rate because they have the opportunity to deduct expenses from income before calculating the tax. Some successful companies do not pay taxes in the USA at all.

When adding to the 35% -set of average corporate tax rates in individual states, the figure reaches 38,9%, putting the US on the 3 place among the 188 countries covered by the Washington DC study Tax foundation. The United States lags only behind the UAE, where the tax is 55%, and Puerto Rico, where corporations pay 39% to the treasury.