US President intends to massively lower both corporate profit tax and individual income tax.

US Treasury Secretary Steven Mnuchin and Director of National Economic Council Gary Cohn have presented the tax initiative of President Donald Trump, Correspondent.net reports.

US President intends to massively lower both corporate profit tax and individual income tax. He expects that the economic upsurge will lead to the growth of tax base and, as the result, will not affect budget revenues.

Trump’s plan provides for the reduction of corporate profit tax from 35% to 15%. According to Mnuchin, this tax will apply to corporations as well as small and medium business.

He also promised the low tax for returning the profit from abroad, which, according to him, will lead to the return of trillions of dollars, gained by US companies in third countries.

For individuals Trump offers to reduce the number of tax categories from seven to three.

“We intend to reduce taxes and simplify tax legislation through the reduction of seven existing tax rates to three – 10%, 25% and 35%. We intend to double standard amounts of income, not liable to individual income tax”, Cohn noted.

According to him, the USA creates “zero tax rate for the first 24 thousand dollars of income, which the married couple earns”.

In addition, Trump intends to set tax relief for the families with kids and double the tax deduction for married couples. He also wants to cancel the tax, which Cohn called the “death tax” – large-scale taxation, which hampers the conveyance of large fortunes by inheritance. 

The Director of the National Economic Council noted the recognized fact that US tax system is very complicated, and added that 90% of taxpayers have to resort to professionals in order to prepare their tax declaration.

According to him, instead of the unified reporting form of US Tax Service, there are 199 different forms of individual income tax.

It should be reminded that Trump claimed that on April 26, he announced about the start of the tax reform.