US President Donald Trump said “it’s time” for US lawmakers to act on tax reform, increasing pressure on Congress as he seeks to make good on one of his biggest campaign promises.His administration is pushing for a simpler tax code and lower rates, but it has said it will leave the details of the proposal to Congress.Lawmakers are expected to present a bill in coming months.”They have to do it,” he said in a speech on Wednesday. “It is time.”There is broad agreement that the US tax code – which runs thousands of pages – needs to be simplified.Powerful business organisations, including the Chamber of Commerce and Business Roundtable, are supporting the effort.Lower rates would be funded by eliminating dozens of special loopholes, designed for specific industries and scenarios.Republicans hope to achieve tax reform by the end of the year, but reaching agreement on the details will be tough, analysts say.”There are a lot of potential pitfalls,” said Scott Greenberg, an analyst at the Tax Foundation.”Although there’s a lot of political will behind this effort, it’s not hard to imagine a world in which it doesn’t work out.”Mr Trump said the US has surrendered its competitive advantage with one of the highest corporate tax rates in the world. He wants to lower the rate to 15%, among other changes.He said he hoped Congress would not disappoint on this campaign, appealing to Democrats and Republicans to work together.”I think Congress is going to make a comeback,” he said. “I hope so. Tell you what – the US is counting on it.”Democrats have said they will not support a tax proposal that offers relief for the very wealthy.They also say they want the plan to be deficit neutral, which would force lawmakers to identify how they might make up for any lost tax revenue.
Source: BBC News