President Donald Trump’s budget would lower the corporate tax rate from 35% to 15%, according to a new analysis by the Tax Policy Center.
This could save billions of dollars, but the Center found that the proposed cuts are not offset by increased investment in the U.s. economy.
Instead, they would be largely offset by lower tax revenue, according to the analysis by Robert Rector, a senior fellow at the Tax Foundation.
The budget also would reduce the amount of money corporations get to invest in their U. s. operations, which would make it harder for companies to expand and hire people.
The Tax Policy Centre estimates that Trump’s plan would result in a net loss of $2.9 trillion over 10 years.
The analysis also estimates that a reduction in the corporate rate from 15% to 25% would result at least in a 0.4 percentage point increase in GDP.
The Center said that the “small business” tax credit would be cut by nearly half in 2019, the year before the plan’s enactment.
The plan would also reduce the corporate income tax rate to 20% in 2024.
This would result, in the Tax Center’s estimation, in a total net loss in 2019 of $1.6 trillion.
The new analysis also shows that the tax cuts would likely not have a significant impact on the budget deficit.
The tax cuts have been estimated to cost $1 trillion in the next decade, but those estimates are based on the assumption that all the proposed tax cuts are enacted before 2019, leaving the cost of the tax cut to be around $600 billion over 10 to 20 years.
Trump has said he would cut corporate taxes, but he has not provided specifics on what those tax cuts will be.
The White House has not yet released its full plan.