Secretary of the Treasury Steve Mnuchin presented the corporate side of President Donald Trump's proposed tax reform in a press conference Wednesday. Today on "The Chris Salcedo Show," Chris Salcedo broke down what the proposed changes mean for corporate America and for individuals.
The Corporate tax rate in the United States is currently at 35%, which is the third highest in the world. The taxes paid by corporations are then added to the cost of every good and service Americans purchase. Mnuchin stated the corporate tax would be lowered to 15% under the new plan.
The current high rate leaves companies little option but to send millions of dollars offshore, creating jobs away from America to save on taxes. According to Mnuchin the plan will save businesses additional money with "tax reform and simplification" and a territorial system.
Chris explained that this means a business will only be taxed in the location in which it makes a profit. If a corporation makes money in the United States, it would be subject to the 15% U.S. tax. If it makes money in another country, it would be taxed at that nation's rate, which should lead to more capital investment in America.
The Treasury Secretary also revealed a one time tax on overseas profits in an attempt to bring back trillions of offshore dollars. This rate has not yet been decided.
"The President is determined to unleash economic growth," Mnuchin said. Chris predicted a wealthier and more functional America with this plan, improving infrastructure and creating jobs: an "improved lot for everybody."