The Trump administration's long-awaited tax reform plan will propose slashing corporate taxes to 15 per cent, from the current maximum of 35 per cent, US Treasury Secretary Steven Mnuchin said on Wednesday.
"Since the 15 per cent has been in the press for the last couple of days, I will confirm that the business tax is going to be 15 per cent," Mnuchin said at a discussion about the proposal.
He said the lower rate is aimed at helping small businesses, not the wealthy.
"What this is not going to be is a loophole to let rich people who should be paying higher rates pay 15 per cent."
Mnuchin, who will outline details of the tax plan at the White House later on Wednesday, said the administration hopes to push the reform through Congress as quickly as possible.
But President Donald Trump's plan for a major new tax reform will face lawmakers already sharply divided over fiscal policy and rising deficits.
Analysts have said cutting the marginal corporate tax rates by 20 percentage points could add as much as $2 trillion to the deficit over a decade.
The administration believes growth will bring in revenues to make up the difference — a calculation known as "dynamic scoring" — but economists say this is not supported by evidence from prior efforts.
Mnuchin also said the administration plans to simplify the process by which Americans declare their income and pay taxes.
The "objective is simplifying personal taxes. For most Americans, we think they should be able to do their taxes on a large postcard," he said at the event, which was hosted by the newspaper The Hill.
Meanwhile, the federal government could be forced to shutdown Friday night if lawmakers fail to approve new legislation to allow spending to continue in the absence of a complete budget.