The Trump administration appears to be shifting gears away from health care reform and immigration issues to focus on tax reform. Trump recently announced that his admin-istration will be announcing the broad outline for tax reform this week. However, administration officials appear to be uncertain as to key aspects of the plan, stating that more details will be released in June.
One aspect of the tax plan that is expected is a slashing of corporate tax rates from a top rate of 35% currently to just 15%. This would lower the US corporate tax rate from well over the global average of 22.5% to well below it. However, it may not be easy to get such a large tax cut through Congress. Most Democrats are unlikely to sign on to the bill unless some concessions are made to support pillars of their platform. In addition, many Republicans are worried about the impact that large tax cuts may have on an already increasing federal deficit.
With so many issues to be ironed out, tax reform may be pushed out into 2018. This may be a disappointment to many business owners who are hoping for some tax relief this year.