This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-41404415

The article has changed 6 times. There is an RSS feed of changes available.

Version 2 Version 3
Trump to outline major tax cut plans Trump outlines major tax cut plans
(about 3 hours later)
US President Donald Trump will call for major tax cuts for business in a speech later, as a longstanding Republican effort to overhaul the US tax code takes centre stage. US President Donald Trump is calling for major tax cuts for business in a speech, as a longstanding Republican effort to overhaul the US tax code takes centre stage.
Top Republicans released a framework for the tax overhaul earlier. Top Republicans released a framework for the overhaul that includes lowering the tax rate for corporations from 35% to 20%, among other changes.
They are looking for a policy win, after repeated failure to reform the US healthcare system. But many aspects remain unknown.
Among the planned changes is a cut in the corporation tax rate from 35% to 20%. Republicans are looking for a policy win, after repeated failure to reform US healthcare.
US Treasury Secretary Steven Mnuchin described the document released on Wednesday as a template that Congress will use to craft legislation. They presented a united front on Wednesday, pledging to make changes while they control both the White House and Congress.
In addition to the corporate tax cut, the negotiators said they have agreed to change the tax on overseas profits and create a top 25% rate for small businesses and firms organised as "pass-through entities" such as limited liability corporations. "We're ready to build on this momentum and help get tax reform across the finish line," Representative Kevin Brady of Texas said.
For families, negotiators plan to nearly double the amount individuals and families can deduct, increase the tax credit for children and introduce a new tax credit for dependents who are not children, such as the elderly or disabled. They will also eliminate a tax on inheritance. What cuts are in Republican tax plan?
For businesses:
For families:
'Hard decisions'
Democrats blasted the proposal, saying it would raise the burden on middle-class families, while offering a break for the wealthy.
They also said the cuts would increase the deficit, putting entitlement programmes such as Medicare and Social Security at risk.
The Committee for a Responsible Federal Budget, a nonpartisan think tank, said a rough analysis suggests the proposal would lead to $2.2tn in net cuts over about a decade.
The Trump administration maintains that closing loopholes will help offset revenue loss, but the plan does not specify what benefits will be eliminated.
Lawmakers plan to preserve tax incentives for homeownership, retirement, education, as well as research and development.
What will be eliminated?
White House officials said they intend to erase deductions for state and local taxes, among others.
They also said the lower rate for business will spur growth, helping to cover the cost.
Economists say growth will not be enough to close the gap. They expect the plan to add to the US debt, which has already passed $20tn.
Trump dines with Democrats to talk taxTrump dines with Democrats to talk tax
Trump: 'It's time' for tax reform - TrumpTrump: 'It's time' for tax reform - Trump
US tax reform: Tough task for TrumpUS tax reform: Tough task for Trump
The Trump administration had earlier pledged to achieve tax reform before the end of August.The Trump administration had earlier pledged to achieve tax reform before the end of August.
A so-called "Big Six" team of negotiators have spent months meeting to thrash out a framework, with the aim of simplifying the code and cutting rates, especially for businesses.
But it has been tough to reach agreement on even the broad goals released on Wednesday, many of which are familiar from earlier proposals.But it has been tough to reach agreement on even the broad goals released on Wednesday, many of which are familiar from earlier proposals.
Democrats oppose cuts for the wealthy and some conservatives are worried that cuts will add to the deficit. The Chamber of Commerce, an influential business group that has pushed for reform, said it would remain engaged during the "hard decisions" ahead.
Many key details still need to be worked out.
For example, lawmakers want to slim the number of tax brackets to three - with filers charged at a 12%, 25% or 35% rate - but what incomes would qualify for each rate remains to be seen.For example, lawmakers want to slim the number of tax brackets to three - with filers charged at a 12%, 25% or 35% rate - but what incomes would qualify for each rate remains to be seen.
Currently, the bottom rate is 10% and the top rate is close to 40%.Currently, the bottom rate is 10% and the top rate is close to 40%.
White House officials rejected the idea that the plan would increase the tax burden on lower income families, citing the increased amount households will be able to deduct. White House officials said the framework leaves Congress the flexibility to maintain a fourth, higher rate on the wealthiest households.
They also said that the framework leaves Congress the flexibility to maintain a fourth, higher rate on the wealthiest households. They also said the increased deduction will lower the overall tax burden, despite the higher rate for lower income families.
Lawmakers are also grappling with how to pay for the tax cuts. Democrat Chuck Schumer called that "bunk".
The Trump administration maintains that closing loopholes will help offset revenue loss, but the plan does not specify what benefits will be eliminated.
Lawmakers plan to preserve tax incentives for homeownership, retirement, education, as well as research and development. White House officials said they intend to erase deductions for state and local taxes, among others.
They also say the reform will spur growth, helping to cover the cost.
Economists say it will not be enough to close the gap and expect the plan to add to the US debt, which has already passed $20 trillion.