GOP, White House Eye Deep Cuts to Corporate Tax Rate - NBC New York
President Donald Trump

President Donald Trump

The latest news on President Donald Trump's presidency

GOP, White House Eye Deep Cuts to Corporate Tax Rate

The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent

    processing...

    NEWSLETTERS

    Trump, Lawmakers Push Agendas for Tax Reform

    Republican and Democratic lawmakers will meet with President Donald Trump for the third day in a row to talk tax reform, with all three sets of politicians focusing on their own agendas. (Published Wednesday, Sept. 13, 2017)

    The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the levy for the wealthiest Americans, with President Donald Trump ready to roll out the policy proposal at midweek.

    The grand plan to rewrite the nation's tax code would be the first major overhaul in three decades, delivering on a Trump campaign pledge and providing a sorely needed legislative achievement. It also is expected to eliminate or reduce some tax breaks and deductions.

    The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday. They spoke on condition of anonymity ahead of a formal announcement.

    In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simply the tax system by reducing the number of income tax brackets from seven to three.

    Shutdown, Russia Woes Grow for Trump

    [NATL] Shutdown, Russia Woes Grow for Trump

    President Trump lashed out at House Speaker Nancy Pelosi amid the ongoing government shutdown and more troubling revelations about the 2016 election. NBC's Tracie Potts reports.

    (Published Thursday, Jan. 17, 2019)

    Trump has said he wanted to see a 15 percent rate for corporations, but House Speaker Paul Ryan has called that impractically low and risking adding to the soaring $20 trillion national debt.

    The White House and congressional leaders planned an all-out blitz later this week to build support for the plan, which is now Trump's top legislative priority as the GOP has struggled to repeal and replace Democrat Barack Obama's health care law. The political stakes are high for Trump, who has promised to bring 3 percent economic growth and expanded jobs through tax cuts.

    Vice President Mike Pence was expected to hold events in Michigan and Wisconsin on Thursday to promote the tax plan with business leaders.

    The plan being assembled lays out "pro-growth tax reform," Rep. Kevin Brady, R-Texas, head of the tax-writing House Ways and Means Committee, told reporters on Capitol Hill. It will fix a tax code that is "so complex, so costly and so unfair," he said.

    Details will be filled in later by the committee, and legislation will be put forward after the House and Senate enact their budget frameworks, Brady said.

    Republicans are divided over the potential elimination of some of the deductions, underscoring the difficulty of overhauling the tax code even with GOP control of the House and Senate.

    More Migrant Families Separated Than Initially Reported

    [NATL] More Migrant Families Separated Than Initially Reported

    Thousands more migrant families may have been separated than the government initially reported, a watchdog group said, possibly due to ongoing problems keeping track of children.

    (Published Thursday, Jan. 17, 2019)

    House Republicans planned to hold a Wednesday retreat at Fort McNair, Maryland, a few miles from the White House, to discuss the proposal, with briefings led by Brady and Rep. Peter Roskam, R-Ill.

    Trump planned to address the plan in a speech the same day at the Indiana State Fairgrounds in Indianapolis. Cabinet members and other top administration officials were fanning out on Thursday to talk about the benefits of overhauling the tax system.

    "The tax reform I think is very critical and he knows that," said Christopher Ruddy, the CEO of NewsMax and a longtime Trump friend. "And that's why he'll push really hard for it. But he's got something big going for him here. The Republicans need to run on something next year and it's tax cuts. So even if they don't want to be particularly helpful to him, I think they're going to give him this. If he has the tax cuts signed, I think it's going to be very helpful for him."

    Touching with his conservative base, Trump planned to discuss the tax plan at dinner Monday night with representatives of several conservative, religious and anti-abortion groups.

    Outside Republican groups and business interests are also planning a major push to advocate for the tax framework.

    Corry Bliss, the executive director of the American Action Network, a conservative advocacy group, said it planned to spend $12 million — atop the $8 million it spent laying the groundwork for the tax overhaul — to help win passage of the plan.

    ICE Detains Marine Veteran

    [NATL] ICE Detains Marine Veteran, Says No Investigation

    Family members are furious that a U.S. citizen and military veteran ended up in an immigration detention center facing the threat of deportation. Jilmar Ramos-Gomez was born and raised in Grand Rapids. His mother says he served a tour in Afghanistan while in the U.S. Marine Corps.

    (Published Thursday, Jan. 17, 2019)

    "There's an understanding among outside groups, among members, among Republicans across the country that there is a desperate need to cut middle-class taxes," Bliss said, noting "excitement and relief" among outside groups that it was "finally time" to push the tax package in Congress.

    Republicans control Congress but they are split on some core tax issues. They're in agreement on wanting to cut tax rates and simplify the byzantine tax system but they're divided over whether to add to the government's ballooning debt with tax cuts. The GOP also is at odds over eliminating the federal deduction for state and local taxes.

    That deduction is prominently in the sights of the plan's architects. Treasury Secretary Steven Mnuchin says the administration wants to eliminate or reduce it because the federal government shouldn't be subsidizing states and wealthy households. Nearly 44 million people claimed the deduction for state and local taxes in 2014, according to the most recent IRS tally, especially in the high-tax, high-income states of California, New York, New Jersey and Connecticut.

    Politics figure heavily. There are a host of GOP lawmakers in those four Democratic-controlled "blue" states — including prominent members like House Majority Leader Kevin McCarthy of California. A number of them are pushing back.

    Regardless of what the administration and the House GOP come up with on taxes, Sen. Orrin Hatch, the Utah Republican who heads the tax-writing Senate Finance Committee, has warned that his panel won't be "a rubber stamp" for the plan.

    Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts. That would add substantially to the debt and would enable deeper cuts to tax rates than would be allowed if Republicans followed through on earlier promises that their tax overhaul wouldn't add to the budget deficit. That would mark an about-face for top congressional Republicans like Ryan and Senate Majority Leader Mitch McConnell, who had for months promised it wouldn't add to the deficit.

    Trump Discusses New US Missile Defense Strategy

    [NATL] Trump Discusses New US Missile Defense Strategy

    President Donald Trump discussed his plans for a revamped missile defense strategy during a speech at the Pentagon in Arlington, Virginia, on Thursday.

    (Published Thursday, Jan. 17, 2019)

     

    GOP, White House eye deep cuts to corporate tax rate

     

    By MARCY GORDON and KEN THOMAS, Associated Press

     

    WASHINGTON (AP) — The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the levy for the wealthiest Americans, with President Donald Trump ready to roll out the policy proposal at midweek.

    Shutdown Relief: Easing the Burden

    [NATL] Shutdown Relief: Easing the Burden

    As the government shutdown drags on, companies, restaurants and service providers across the country are coming up with ways to help the estimated 800,000 Americans not getting paid. NBC's Dan Scheneman reports.

    (Published Wednesday, Jan. 16, 2019)

    The grand plan to rewrite the nation's tax code would be the first major overhaul in three decades, delivering on a Trump campaign pledge and providing a sorely needed legislative achievement. It also is expected to eliminate or reduce some tax breaks and deductions.

    The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday. They spoke on condition of anonymity ahead of a formal announcement.

    In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simply the tax system by reducing the number of income tax brackets from seven to three.

    Trump has said he wanted to see a 15 percent rate for corporations, but House Speaker Paul Ryan has called that impractically low and risking adding to the soaring $20 trillion national debt.

    The White House and congressional leaders planned an all-out blitz later this week to build support for the plan, which is now Trump's top legislative priority as the GOP has struggled to repeal and replace Democrat Barack Obama's health care law. The political stakes are high for Trump, who has promised to bring 3 percent economic growth and expanded jobs through tax cuts.

    Vice President Mike Pence was expected to hold events in Michigan and Wisconsin on Thursday to promote the tax plan with business leaders.

    US Troops on Patrol Killed in Blast in Syria

    [NATL] US Troops on Patrol Killed in Blast in Syria

    American troops were killed Wednesday during a patrol in the Northern Syrian town of Manbij, according to the U.S.-led coalition against ISIS. It wasn’t immediately clear how many. The attack comes after the U.S. began the process of withdrawing from Syria.

    (Published Wednesday, Jan. 16, 2019)

    The plan being assembled lays out "pro-growth tax reform," Rep. Kevin Brady, R-Texas, head of the tax-writing House Ways and Means Committee, told reporters on Capitol Hill. It will fix a tax code that is "so complex, so costly and so unfair," he said.

    Details will be filled in later by the committee, and legislation will be put forward after the House and Senate enact their budget frameworks, Brady said.

    Republicans are divided over the potential elimination of some of the deductions, underscoring the difficulty of overhauling the tax code even with GOP control of the House and Senate.

    House Republicans planned to hold a Wednesday retreat at Fort McNair, Maryland, a few miles from the White House, to discuss the proposal, with briefings led by Brady and Rep. Peter Roskam, R-Ill.

    Trump planned to address the plan in a speech the same day at the Indiana State Fairgrounds in Indianapolis. Cabinet members and other top administration officials were fanning out on Thursday to talk about the benefits of overhauling the tax system.

    "The tax reform I think is very critical and he knows that," said Christopher Ruddy, the CEO of NewsMax and a longtime Trump friend. "And that's why he'll push really hard for it. But he's got something big going for him here. The Republicans need to run on something next year and it's tax cuts. So even if they don't want to be particularly helpful to him, I think they're going to give him this. If he has the tax cuts signed, I think it's going to be very helpful for him."

    Steve King Faces Congressional Backlash Over Racist Remark

    [NATL] Rep. Steve King Faces Backlash From Congress Over Racist Remarks

    In a rare moment of bipartisan agreement, members of the U.S. House condemned Rep. Steve King (R-Iowa) for his comments on white nationalism and white supremacy. Even leaders of King's own party are pressuring him to resign.

    (Published Wednesday, Jan. 16, 2019)

    Touching with his conservative base, Trump planned to discuss the tax plan at dinner Monday night with representatives of several conservative, religious and anti-abortion groups.

    Outside Republican groups and business interests are also planning a major push to advocate for the tax framework.

    Corry Bliss, the executive director of the American Action Network, a conservative advocacy group, said it planned to spend $12 million — atop the $8 million it spent laying the groundwork for the tax overhaul — to help win passage of the plan.

    "There's an understanding among outside groups, among members, among Republicans across the country that there is a desperate need to cut middle-class taxes," Bliss said, noting "excitement and relief" among outside groups that it was "finally time" to push the tax package in Congress.

    Republicans control Congress but they are split on some core tax issues. They're in agreement on wanting to cut tax rates and simplify the byzantine tax system but they're divided over whether to add to the government's ballooning debt with tax cuts. The GOP also is at odds over eliminating the federal deduction for state and local taxes.

    That deduction is prominently in the sights of the plan's architects. Treasury Secretary Steven Mnuchin says the administration wants to eliminate or reduce it because the federal government shouldn't be subsidizing states and wealthy households. Nearly 44 million people claimed the deduction for state and local taxes in 2014, according to the most recent IRS tally, especially in the high-tax, high-income states of California, New York, New Jersey and Connecticut.

    Budget Deadlock Continues as Shutdown Hits Its 26th Day

    [NATL] Budget Deadlock Continues as Shutdown Hits Its 26th Day

    Hope for the federal government to reopen is low as a deadlock over the budget from President Donald Trump, Republican lawmakers and Democratic lawmakers continue. The longest government shutdown in U.S. history is on its 26th day. 

    (Published Wednesday, Jan. 16, 2019)

    Politics figure heavily. There are a host of GOP lawmakers in those four Democratic-controlled "blue" states — including prominent members like House Majority Leader Kevin McCarthy of California. A number of them are pushing back.

    Regardless of what the administration and the House GOP come up with on taxes, Sen. Orrin Hatch, the Utah Republican who heads the tax-writing Senate Finance Committee, has warned that his panel won't be "a rubber stamp" for the plan.

    Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts. That would add substantially to the debt and would enable deeper cuts to tax rates than would be allowed if Republicans followed through on earlier promises that their tax overhaul wouldn't add to the budget deficit. That would mark an about-face for top congressional Republicans like Ryan and Senate Majority Leader Mitch McConnell, who had for months promised it wouldn't add to the deficit.