President Donald Trump’s administration is proposing to lower the corporate tax rate, making it easier for companies to pay lower taxes in the future.
The White House released its tax plan on Wednesday, which would allow companies to bring back profits earned before taxes were deducted, but would also allow them to avoid paying taxes on any gains they made prior to those deductions.
The plan would also eliminate the estate tax, a levy that is used to finance some social programs.
Trump, who has called for reducing taxes on corporations and the wealthy, also called for eliminating the estate taxes.
The tax cut would make up for the fact that many businesses, including tech companies, are still paying taxes, the White House said.
The administration said that the changes would result in $3.5 trillion in tax savings over the next decade, including the elimination of the estate and corporate tax rates, which are projected to cost the government $2.9 trillion over the same period.
The Republican-controlled Congress would have to pass a new tax bill to avert the budget-crushing cuts, which will take effect in 2025.
The budget projections were based on Trump’s first year in office, which was a period when the economy was still recovering from the financial crisis.
Under the Trump administration, the economy is expected to grow by 2.5 percent this year and 2.8 percent in 2021.