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Donald Trump says US needs to cut corporate tax to 15% to match China, which has rate of 25%

'We should do everything possible to match them in order to win with our economy'

Samuel Osborne
Thursday 14 September 2017 03:36 EDT
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The US President hopes to lower the corporate tax rate from 35 to 15 per cent
The US President hopes to lower the corporate tax rate from 35 to 15 per cent (AP/Alex Brandon)

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Donald Trump has reiterated his goal to lower the US corporate tax rate to 15 per cent to "match" China.

But China has a standard corporate tax income rate of 25 per cent, according to the State Administration of Taxation.

While certain enterprises in industries encouraged by the Chinese government can qualify for a reduced rate of 15 per cent, the majority of businesses pay the higher rate.

The US President has said he hopes to lower the corporate tax rate from 35 to 15 per cent.

"It would bring us to the level where China and other countries are. And we will be able to compete with anybody," Mr Trump said.

In a tweet, he said: "China has a business tax rate of 15 per cent. We should do everything possible to match them in order to win with our economy. Jobs and wages!"

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There has been no comprehensive overhaul of the US tax code since 1986, and the starkly different visions embraced by the Democrats and Republicans for how to move forward promise to make such a task difficult.

Mr Trump has said the rich might see a hike in taxes as he pursues his tax overhaul by reaching out to Democrats to oppose cutting tax rates for the wealthy.

Democrats have criticised the Republican tax overhaul efforts for benefiting mainly the wealthiest Americans, but Mr Trump said the rich would not be making gains with the plan, which he said was geared toward providing the largest tax cut ever for the middle class and creating jobs.

"I think the wealthy will be pretty much where they are," the real estate mogul said of taxes on the rich, without specifying the income level.

"If they have to go higher, they'll go higher, frankly."

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