Most especially aspects of the corporate income tax system which is so distorting that it's beginning to affect the workings of the larger economy. “Health care and tax reform are two very different things,” Mnuchin said. And to largely make up the revenue loss I'd tax dividends at normal income tax rates, and capital gains--with an inflation adjustment--also at normal income tax rates. The current income tax applied to dividends, plus the corporate income tax rate itself, are higher than the normal full rate of income tax. Thus the abolition of the corporate income tax and replacement would be three things in one.

Source: Forbes March 25, 2017 13:41 UTC