Trump Tax Reform Proposal Cuts Taxes on Corporations, Decreases Federal Revenue by 14%

Mar 8th, 2017

"Currently, there are two major proposals to reform the federal tax code."

"President Trump’s plan would reduce the current corporate income tax rate, from 35 percent to 15 percent. At the same time, the plan would eliminate the corporate alternative minimum tax."

"The House GOP’s Blueprint would ... allow companies to write off or deduct the full cost of capital investments in the year in which they purchased them. This includes purchase of buildings, factories, plants and equipment, and inventories."

"Both plans would reduce the amount of revenue that the federal government would raise over the next decade. The Trump proposal... would reduce revenue by $5.9 trillion over the next decade, or about 14 percent of federal revenue. The House GOP proposal... would reduce revenue by $2.4 trillion over the same period, representing about 6 percent of federal revenue."

Tax Foundation