Cut in corporate tax rate still a Trump priority

On April 26, the Trump administration announced a plan that would lower the corporate tax rate from 35 percent to 15 percent. And now, Trump has reiterated that call with the release of his fiscal 2018 budget proposal.

The administration's budget proposal would "reduce the tax rate on American businesses in order to fuel job creation and economic growth."

That's not as specific as the previous one-page summary of Trump's tax plan, but it's consistent with it.

It's worth remembering that Trump's proposed rate change would also affect businesses known as "pass-through entities" because their profits currently "pass through" the business and instead are taxed as their owner's ordinary income.

These business currently pay taxes at individual rates, which top out at 39.6 percent.

They include partnerships like law firms and investor groups, sole proprietorships, limited liability corporations (LLCs) and corporations with less than 100 shareholders. It also would include Trump's own real estate business.

Such a steep cut in the corporate tax rate would have a major effect on the federal budget. A Tax Foundation analysis of a 15 percent corporate tax rate would cut government tax revenue by $2 trillion over 10 years, or 5 percent of total revenue.

Still, there is no actual tax legislation yet to carry out Trump's priorities, and Congress will have to pass measures before Trump can sign them into law. But his decision to mention the proposal in the budget document keeps this promise at In the Works.