The Trump Administration billed its plan as one of the biggest tax cuts in American history. But as Fred Katayama reports, critics fear revenue losses could add to the federal deficit.
Treasury Secretary Steven Mnuchin unveiled President Donald Trump's tax plan that the Administration billed as one of the biggest tax cuts in American history. The plan calls for slashing the corporate income tax rate to 15 percent from 35 percent and the rate individual business owners pay to 15 percent from nearly 40 percent. For multinationals like Google and Amazon, it'll proposes a tax of 10 percent to bring offshore profits into the U.S. Mnuchin says the tax plan will pay for itself with economic growth and by reducing deductions and closing loopholes. Not so, says Bill Gale, a senior fellow at Brookings Institution. SOUNDBITE: BILL GALE, SENIOR FELLOW, BROOKINGS INSTITUTION, (ENGLISH) SAYING: "I think Trump's plan is utterly misguided. The cutting the corporate and business rate to 15 percent is going to carve out massive revenue losses. It's going to create the biggest tax shelter in history as people try to move wage income into business income form. The effects on the real economy, on the actual size of the economy, are probably not going to be that big." The tax plan could face a challenge on Capitol Hill, but the White House hopes to get the tax bill passed this year.