US corporate tax will fall to 20% in wider reforms

The corporate tax rate in the US would be cut from 35% to 20% under US plans intended to improve competitiveness and deliver tax reform.

The US Treasury outlined its proposals for tax reform in Unified Framework for Fixing our Broken Tax Code. These include changes for individuals such as the repeal of the death tax lower rates for individuals and families and increases in the child tax credit.

It also provides a 25% rate for business income of small and family-owned businesses (reduced from 39%).

Julia Summerville international tax service director at RSM said: ‘A notable exception from the framework was the border tax which will be welcome news for any UK businesses exporting into the US. The controversial plans aimed to tax imported goods and services while introducing an exemption of exported goods and services from the US. It was announced in the...