I agree that the US corporate tax rate needs to be
reduced to 15% to give companies the ability to return their manufacturing
operations to the US. This would put the
US in the best position to avoid the need to impose additional border
taxes. Bi-lateral trade agreements will
give the US the most flexibility to ensure that imports and exports make the
most sense for each country. See article
below:
Trump Wants to Slash the Corporate Tax Rate to 15%:
WSJ, By Brittany De Lea,
4/24/17, FOXBusiness
President
Donald Trump has advised his administration to put deficit concerns on the
backburner and work on a plan to slash the corporate tax rate to 15 percent,
according to a report Monday from The Wall Street Journal .
President
Trump told his staff he wants to deliver on his promise of significant tax
reform even if it means the nation loses revenue at the outset, The Journal
said.
While
Trump has used 15 percent as the baseline for his corporate tax cut pledge, the
House GOP leadership initially suggested using 20 percent as the starting point
for negotiations. The current business tax rate is 35 percent.
The
president and members of his cabinet argue tax reform (i.e. tax cuts) “will pay
for itself” through the economic growth they expect it will create. However, a
severe decrease in the corporate rate would add to the deficit—at least at the
beginning—without the introduction of any off-setting measures. If Trump plans on
passing his tax plan through budget reconciliation that is likely to deliver
complications.
Reconciliation
requires only a simple majority of votes, but the legislation cannot increase
the deficit over a ten year period. The administration has tried to repeal and
replace ObamaCare first because the tax cut from the proposed health care
blueprint would’ve provided a more favorable baseline upon which to enact a
revenue neutral tax reform plan.
The White
House will release a broad overview of its tax reform plan as early as
Wednesday, according to administration officials. GOP leadership, including
House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell, will meet
with cabinet members Tuesday night to discuss details of the impending plan that
is expected to include tax cuts for individuals and corporations, as well as a
simplification of the tax code.
Norb
Leahy, Dunwoody GA Tea Party Leader
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