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An announcement on tax reform is coming in a matter of weeks, President Donald Trump said Thursday.
Trump said his administration will soon provide more details on a much-anticipated plan to cut taxes, suggesting that corporations will see a significant reduction in taxes. He made the remarks before a meeting with airline executives at the White House.
“We’re going to … lower the overall tax burden on American businesses big-league. That’s coming along very well. We’re way ahead of schedule, I believe. We’re going to be announcing something, I would say, over the next two or three weeks,” Trump said.
The announcement will outline a "comprehensive" plan that addresses both corporate and individual taxes, according to White House spokesman Sean Spicer.
In an interview Thursday on the FOX Business Network, White House senior adviser Kellyanne Conway noted that President George W. Bush signed a tax bill in June 2001, about five months after his inauguration. She added that Trump’s tax reform will be “more ambitious.”
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“He’s going to make good on that promise early in his administration,” said Conway. “We’re looking at the 1986 tax cuts by President Reagan, we’re looking at the realities of today’s economy, the crushing unaffordability of everyday life many American families in the White House tell us about, and really taking the yoke off the businesses as well.”
Conway added, “we’re very excited in the next couple weeks. The President said he’ll make a statement, obviously working very closely with Capitol Hill, the leaders in both parties, on this matter.”
The federal corporate tax rate of 35%—the highest among developed economies—appears to be on the chopping block. Republicans on Capitol Hill are working on a plan that would lower the rate to 20%, while Trump pitched a 15% corporate tax rate during the presidential campaign.
U.S. stocks rallied on the news Thursday. The Dow Jones Industrial Average surged to 20,181 by midday trading, a 127-point gain. The Dow, S&P 500 and Nasdaq Composite all hit intraday highs.
During Thursday’s meeting with airline executives, Trump pledged to reduce red tape for the industry from taxes to regulations. He also criticized the current state of the air traffic control system, calling it “totally out of whack.” Trump cited his own pilot, who says that airlines and airports are often provided with outdated equipment.
The CEOs voiced their support for the administration’s plans.
“We’re very well-aligned on some very key topics: income tax reform, regulatory reform and, especially, growing our industry. We need to invest in infrastructure. We’re especially keen on modernizing the air traffic control systems,” Southwest Airlines (LUV) CEO Gary Kelly said outside the White House.
The meeting included the CEOs of United Airlines (UAL), Delta Airlines (DAL) and JetBlue Airways (JBLU). Top executives from United Parcel Service (UPS), FedEx (FDX) and several airports were also present.
FOXBusiness.com’s Benjamin Brown contributed to this report.