10/11/2017 2:43:00 PM Tax plan to repatriate international cash
WASHINGTON (AP) — President Donald Trump is focusing on his top legislative priority, using a Pennsylvania visit to pitch his tax overhaul.
Trump’s speech in Harrisburg was set against a backdrop of big rigs, with lots of truckers in attendance, according to the White House. The president has been traveling the country to promote a plan that would dramatically cut corporate tax rates from 35 percent to 20 percent, reduce the number of personal income tax brackets and boost the standard deduction.
Trump said that his tax reform framework would benefit truckers by lowering their tax rates, boosting manufacturing, and making it easier for families to pass their trucking businesses on to their children.
"When your trucks are moving, America is growing. That is why my administration is taking historic steps to remove the barriers that slow you down," Trump said. "America first means putting American truckers first."
Republicans in Congress aren't solidly behind him, with some from high-tax states balking because the framework calls for eliminating the federal deduction for state and local taxes. That deduction is claimed by an estimated 44 million people and costs the government an estimated $1.3 trillion in lost revenue over 10 years.
Trump highlighted the tax plan's provisions aimed at encouraging international companies to bring back, or repatriate, cash that they've kept overseas. All told, there's more than $1 trillion in cash held abroad by S&P 500 companies, according to Deutsche Bank.
"We will eliminate the penalty on returning future earnings back to the United States and we will impose a one-time low tax on money currently parked overseas so it can be brought back home to America, where it belongs," Trump said. He added that his Council of Economic Advisers estimates that the change "would likely give the typical American household a $4,000 pay raise."