US President Donald Trump today said that under his administration, the era of economic surrender is over and the rebirth of American Industry has begun.
On Wednesday, Trump introduced 'once-in-a-generation' tax plans which he said would bring relief to the working Americans, spur job growth and reform the tax code.
Addressing the powerful National Association of Manufacturers (NAM), the president listed out the series of steps that he has taken, including his proposals to reform and reduce corporate tax.
"Under my administration, the era of economic surrender is over and the rebirth of American Industry has begun," he said addressing leaders of the manufacturing sector here.
For the majority of American manufacturers that file taxes as sole-proprietors, corporations or partnerships, Trump said his administration will cap their top tax rate at a maximum of 25 per cent.
This will be the lowest top marginal income tax rate for small and medium-sized businesses in more than 80 years.
"This huge tax cut will be the rocket fuel for our economy," Trump said.
His remarks come a day after latest official figures revealed that the US economy grew at a rate of 3.1 per cent in the second quarter.
"To further help our companies to compete, for the next five years our framework will allow you to fully write off the cost of new equipment in the year you buy it. That means more production, more investment and more jobs," Trump said.
He said that he wants every American to know the dignity of work, the pride of a paycheck and the satisfaction of a job well done.
NAM president and CEO Jay Timmons said that there is record-level optimism among manufacturers of all sizes.
This is in no small part because Trump has delivered on his commitment to put the full weight of White House behind bold tax reform, he said.
"Now is the time to think long term and act boldly. Our future depends on it. We have an administration and a Congress that have delivered results," Timmons said.
In a fact sheet, the White House said that the unified tax relief framework will end the "offshoring model" that encourages companies to keep their profits out of the country.
US companies hold an estimated USD 2.8 trillion in earnings offshore, according to Audit Analytics.
Under the new tax plans, profits that have accumulated offshore will be subject to a one-time low tax, thereby ending the tax incentive to keep those profits offshore.
Trump has proposed to reduce the corporate tax rate to 20 per cent.
His plan also proposes to cap top marginal tax rate paid by sole proprietors, corporations and partnerships to 25 per cent.
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