Joshua Roberts | Reuters
Secretary of Commerce Wilbur Ross speaks at 2017 SelectUSA Investment Summit in Oxon Hill, Maryland, U.S., June 19, 2017.
Passing a comprehensive tax reform, one of President Donald Trump’s key campaign promises, is a crucial focal point for the Administration, particularly following the repeated failures to repeal and replace Obamacare.
Trump and House Republican leaders plan to introduce what they call a “framework for tax reform” on Wednesday.
That framework would reportedly include a major cut to the corporate tax rate, bringing it from 35 percent to 20 percent, as well as a reduction in the top individual rate, from its current 39.6 percent to 35 percent.
Trump, who has pushed for lower rates for corporations, previously said he would prefer a 15 percent corporate rate. Ross said that figure is still the goal.
“We’ve not made an announcement. President Trump has indicated his goal and his hope would be to get as close to the 15 percent as we possibly can,” he said.
Another issue surrounding tax reform involves giving companies breaks on profits earned overseas — in the hopes that such a break would encourage them to bring those earnings back to the United States.
Repatriation of overseas bundles of cash is “a very important objective,” Ross said. “We believe that there’ll be a vast amount of it brought back if the president’s notion of a very reduced rate on the immediate repatriation goes through.”