A newly announced plan to slash corporate tax rates for the first time in three decades will give the president-elect a huge windfall, but many of the corporate CEOs who are being targeted will receive tax cuts at their expense.
Trump’s corporate tax cuts are the latest in a string of tax cuts he’s proposed since taking office.
A tax overhaul passed by Congress last year and signed by Trump would slash the corporate tax rate from 35 percent to 20 percent, with the plan also eliminating some deductions and taxing more of those earned in foreign countries.
But the corporate rate would remain high for most corporations, with most companies paying a top rate of 39.6 percent on all profits.
Under the plan unveiled Friday by Treasury Secretary Steven Mnuchin, companies with revenues above $10 billion in 2017 would pay a top corporate tax of just 11.8 percent on their profits.
Mnuchin said the corporate deduction, for instance, would be eliminated and companies would pay an effective rate of 35 percent on foreign profits.
The plan would also eliminate the alternative minimum tax, which the administration says would benefit small businesses.
But Trump has been a vocal opponent of the tax cut, which he has touted as a boon for American workers.
