The US government is reportedly considering a plan to lower the corporate tax rate to 20%, from 35%, a move that could help spur economic growth and save billions of dollars a year, the Wall Street Journal reports.
The plan, dubbed the Fiscal Cliff Tax Cuts, was announced by President Donald Trump earlier this month.
While the plan is a step in the right direction, the move would still be an economic and budgetary disaster.
Under the plan, corporations would pay the same tax rate as they do now, which means companies would pay less tax and companies would not have to pay any capital gains taxes.
It would also mean that the corporate rate would stay at 35% for all companies, which would mean that more companies would move overseas and fewer would stay in the US.
The Fiscal Cliff is also reportedly being considered as a possible response to a global recession.
It could be that the tax cut would actually lead to more economic growth.
The US is a nation that’s been hit hard by the global recession, but the Tax Cues would be the largest one-year tax cut in history.
It’s estimated that the plan could save the US as much as $600 billion a year in taxes, and would save the federal government $1.6 trillion over the next decade.
But while the Tax Plan is a big step forward for the US economy, it will have some challenges to overcome.
One of the biggest challenges will be the fact that it is currently being passed by Congress.
A separate bill, the Tax Relief Reconciliation Act of 2017, would cut the corporate income tax to 20% from 35% in 2019, and then cut the estate tax to 39.6% in 2025.
Both bills are expected to pass Congress in the coming weeks, and the US Treasury will start reviewing its options for how to handle these tax changes, according to Reuters.