U.S. President Donald Trump said he expects a second tax overhaul to be unveiled in October or a bit earlier, and he is considering cutting the corporate tax rate to 20 percent from 21 percent.
In an excerpt of a Fox Business Network interview to be broadcast on Sunday, Trump said: "We are doing a phase two. We will be doing it probably in October, maybe a little sooner than that. One of the things we are thinking about is bringing the 21 percent down to 20, and for the most part the rest of it would go right to the middle class," he said.
In April last year, the American President introduced a new plan that reshaped American taxes, that went into effect in March 2018. Under the new law, corporate taxes were slashed from 35 percent to 21 percent, the biggest cut in corporate taxes in American history.
It did help bring several American companies offshore activities back to the US, but by dropping corporate taxes, the move did not go down well with most of the public. The nonpartisan Congressional Budget Office (CBO) said that the tax cuts would severely impact the fiscal deficits of America.
Along with Trump's trade war, the reduction in corporate taxes has forced more and more American companies to embrace the USA, while limiting their reach globally. Even tech giant Apple announced it was reshaping its American policy following the tax cuts, allowing Apple to bring in nearly a billion dollars from outside the USA.
[ Source- Reuters]
