Trump has vowed to give Amazon and Walmart tax breaks in their upcoming tax reform bills, but he also promised to deliver on his campaign promise to slash the corporate tax rate to 25 percent and to eliminate deductions for state and local taxes.
Trump’s tax plan includes a tax credit for the sale of online products.
“The goal is to have a net tax reduction of at least $100B in 2025, which will be in addition to the $100 B in savings from eliminating the alternative minimum tax, the mortgage interest deduction, the estate tax, and many other taxes that help pay for all of our social programs,” Trump said in an email statement on Friday.
“I will be releasing a detailed plan for tax reform that will be available in the coming weeks.”
The president also promised the elimination of the Alternative Minimum Tax, or AMT, which is a tax on the purchase of certain items.
Trump’s plan also includes a $1,000 credit for every dollar that a business sells online, a $200 credit for each dollar that consumers spend online, and a $300 credit for consumers who buy a gift card online.
Amazon, Walmart, Target, Home Depot, Costco, Kmart, and other big retailers have already said they will give tax breaks to Amazon, which has raised $3.8 billion in federal tax credits since January.
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