The Democratics in the US have been charging that the tax-cut favours the wealthy Americans. On Saturday, the US President Doanld Trump took the side of a Republican tax-cut plan against Democratic charges, and announced that he will ensure to give ‘one of the great Christmas gifts’ for the middle class US.
Before going for meetings at Camp David, Trump told reporters at the White House: “It’s going to be one of the great Christmas gifts to middle-income people.
“This is going to bring money in. As an example, we think $4 trillion is going to be flowing back into the country. That’s money that’s overseas that’s stuck there for years and years.”
The announcement came only a few days before Congress votes.
With the assurance of support from the US Senators Marco Rubio and Bob Corker, the plan got finalised on Friday. If the bill passes, it will not only turn into a law, but also will be the biggest US tax rewrite since 1986. Adding to these, the tax rewrite will also be the first major legislative victory of Republican lawmakers and Trump.
The major US Republicans have opined that they are expecting the Congress to pass a tax code overhaul this week. A Senate vote on Tuesday and President Donald Trump’s aim to be done with the signing of the bill by this week are on the cards, that many are looking forward to.
The proposed package would slice off the US corporate tax rate to 21 percent and chop off taxes for the rich.
Under an agreement between the House of Representatives and the Senate, the corporate tax would be 1 percentage point higher than the 20 percent rate earlier proposed. Yet the percentage is lagging behind the current rate of 35 percent. This is a major tax reduction that corporations have been seeking for years.