On the campaign trail, President Donald Trump promised to end “the tax system that allows billionaires to buy our elections,” but he has so far failed to deliver on his pledge.
On Monday, the Treasury Department said that the Trump administration will “reform and reformat” the US corporate tax system and will begin to roll back several key provisions, including a controversial 15% rate for capital gains and dividends and a special depreciation tax on the value of corporate assets.
Treasury Secretary Steven Mnuchin has been quick to promise that these changes will help spur economic growth and that they will result in a more competitive tax system for American companies.
“Today’s announcement represents a bold new start in the direction of bringing corporate tax reform to the American people,” Mnuchin said in a statement.
“This reform is part of our plan to rein in corporate tax avoidance, streamline the tax code, and strengthen the financial stability of the U.S. economy.”
Mnuchin’s pledge to end tax breaks for the wealthy is part in a broader effort by the Trump Administration to end what critics have called unfair corporate tax treatment.
“We will repeal the estate tax, phase out the carried interest tax, eliminate the alternative minimum tax, and repeal the Alternative Minimum Tax for all income over $1 million,” Mnuecels statement reads.
“The administration is working to fully implement our tax reform agenda, including the estate and alternative minimum taxes, as part of the Tax Cuts and Jobs Act.”
However, it is unclear how many of these corporate tax cuts will actually go into effect.
In addition to eliminating the 15% corporate tax rate, Mnuchin announced on Tuesday that he would “phase out the Alternative minimum tax.”
As part of Mnuchins plan to reduce the tax burden on companies, the estate is projected to be reduced by more than $100 billion, and Mnuchin also announced that he is “pushing for $2 trillion in tax relief for families.”
“The American people deserve better, and I am committed to helping make this happen,” Mnueser said.
But Mnuchin did not offer any details on what the administration would do to help lower the tax bill for middle-class families.
Trump also pledged that he will not cut taxes for individuals, saying that he intends to “treat all Americans the same.”
However the administration has been slow to roll out specific tax cuts.
Trump announced that his tax plan would cut taxes on businesses and individuals.
The tax cuts are expected to save $1 trillion over the next decade, but Mnuchin promised that his proposal would also include “the largest tax cuts for the middle class in history.”
The Tax Policy Center has estimated that the plan would add $1.4 trillion to the national debt over the coming decade.
The Tax Foundation, a conservative think tank, also found that Mnuchin would add only $0.4 in revenue over the first decade under the Trump plan.
On the issue of corporations, Mnueces administration has already promised that it will bring corporate tax relief.
In a statement on Monday, Mnues spokesperson Lauren Kallman said that “while there are some important changes in the way the corporate tax code is structured, they will be rolled back and will help ensure that businesses pay their fair share of taxes.”
“We have made significant progress in lowering the tax rate for corporations over the past several years, and we intend to continue to make progress in the coming years,” Kallmen added.
Mnuchin is scheduled to deliver a speech on Tuesday morning outlining his plan to rollback corporate tax breaks and to help Americans pay for a tax reform that “strengthens the financial markets and drives growth.”