Trump to slash business tax

Photo: The Canadian Press

Treasury Secretary Steve Mnuchin

President Donald Trump plans to propose massive tax cuts for businesses big and small as part of an overhaul that he says will provide the biggest tax cuts in U.S. history.

In addition to big tax cuts for corporations, Trump also wants to cut taxes for small business owners from a top tax rate of 39.6 per cent to a top rate of 15 per cent, said an official with knowledge of the plan.

The top tax rate for individuals would be cut from 39.6 per cent to the "mid-30s," the official said.

The official, who spoke on condition of anonymity, was not authorized to discuss the plan publicly ahead of Trump's announcement, scheduled for Wednesday.

White House officials had already revealed that Trump's plan would reduce the top corporate income tax rate from 35 per cent to 15 per cent. The plan will also include child-care benefits, a cause promoted by Trump's daughter Ivanka.

Republicans who slammed the growing national debt under Democrat Barack Obama said Tuesday they are open to Trump's tax plan, even though it could add trillions of dollars to the deficit over the next decade.

Echoing the White House, Republicans on Capitol Hill argued that tax cuts would spur economic growth, reducing or even eliminating any drop in tax revenue.