According to reports, Trump stated last Friday that he hopes to pursue further tax reform, with the second tax reform plan expected to be announced in October or earlier, considering reducing the corporate tax rate from 21% to 20%.
This is Trump's second round of tax cuts. In December of last year, the Trump administration launched a massive tax cut policy, reducing the corporate tax rate from 35% to 21%.
On Friday, Trump delivered a celebratory speech regarding the first round of tax reform, which amounted to $1.5 trillion. He stated that since the implementation of the tax cuts six months ago, over 6 million American workers have received bonuses, raises, and contributions to their retirement funds. He also announced the aforementioned second round of tax reform plan.
One of our intentions is to further reduce the corporate tax rate from the current 21% to 20%, which in most cases will directly benefit the middle class. This is a great stimulus plan.
However, he did not disclose more details.
Republicans have indicated that they hope to propose a permanent tax cut plan aimed at families and individuals in December. White House economic advisor Kudlow previously stated that some aspects of the second round of reforms may include personal tax cuts and other provisions.
The tax cuts currently in effect will expire in 2025. Further reducing the tax rate by 1% is expected to result in a total reduction of $100 billion over the ten years following the implementation of the policy. However, Trump did not specify what measures they would take to compensate for such a significant new tax revenue gap. The first round of tax cuts is expected to increase the government deficit by $1 trillion over ten years.
It remains unclear whether the further tax cut plan will receive broad support from Republicans.
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