Corporate tax rate could get to 20 percent, says Grover Norquist

Key Points
  • Trump will likely keep his campaign promises in regards to tax reform, said Norquist
  • He added that the corporate rate could go down to 20 percent
Grover Norquist: Corporate tax rate will get to at least 20%

President Donald Trump's tax plan will probably look similar to what he espoused on the campaign trail, Grover Norquist, the president and founder of Americans for Tax Reform, told CNBC on Friday.

"It is probably going to look a lot like what Trump talked about in the campaign merged with the Republican House proposal, which was co-authored by the Trump people. So, we know Trump in the campaign talked about taking the 35 percent corporate rate down to 15 percent. That will go at least to 20, maybe to 15 — that could be the surprise next week. But at least to 20," Norquist said in an interview with "Power Lunch."

"That makes us competitive with the rest of the world."

On Friday, Trump is expected to sign several "financial related" executive actions. The president also remarked that he would release a tax reform package featuring a "massive tax cut."

"It will also include something that both the House Republicans and Trump made a commitment on, and that is the business income," Norquist added.

"A lot of business income is taxed at the individual level, through subchapter S corporations, partnerships and so on. Both of those rates will come down by 43 percent," he said. "It's not just General Motors and Boeing that finds this exciting. It's ten plus million self-employed people."

Norquist also said that he would not be surprised if the border adjustment tax was still included in the plan.

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