Massive Tax Cut To Bring Jobs: President's Weekly Address

Randall Padilla
May 8, 2017

They are wary of another downturn, and some sectors are struggling against low oil prices and a rising dollar that makes exports more expensive.

71% say tax reform is "the best way to accelerate economic growth over the next year". So we're saying for the first time that every product pays an equal tax.

Finally, Trump plans to repeal the federal death tax.

But the issue is complex. "If you save for retirement, education or health care, we cut your taxes in half again because we want to reward those types of savings", Brady explained. The stronger dollar hurt companies that sell their products overseas, and exports fell.

Coming out of the Great Recession, the economy had "a lot of excess capacity" - factories not operating at full tilt, equipment sitting idle - and businesses didn't see enough demand to justify investing in more of it, she said.

"We expect to pay for this through economic growth, and through eliminating a lot of deductions", Mnuchin said, adding that tax cuts could increase the rate of economic growth from around 2 percent to as much as 3 percent a year.

Doing so, in turn, could make the economy more efficient and accelerate growth and hiring. The developed countries in the world average is 23 percent.

We should commend President Trump and his team for putting forth a tax plan which has a plausible and attractive goal - cutting the corporate tax- as a central feature.

The politics around BEPS is driven by the fact that it is easy to look at how much money a multinational "makes" in New Zealand and then at how little tax it pays here and conclude that we are being ripped off in some way.

Yet companies can avoid the tax if they keep their foreign earnings overseas. This worldwide process is what enables reinsurance rates to remain low because, when it comes to risk, concentration is a bad thing. Multiple brackets. High rates.

"Supporters of the blueprint understand the importance of reforming our tax code in a way that incentivizes investment in the United States and the production of American goods, in American towns, by American workers", John Gentzel, a spokesman for a consortium of businesses lobbying for the provision, tells CNN.

Those owners now pay individual income tax rates, which top out at 39.6 percent.

The only way out for Republicans is to impose a new tax to finance lower corporate and personal income taxes - notably, a VAT as applied by most other advanced industrialized countries.

Another excellent tax reform idea proposed by Rep. Kevin Brady (R-TX), Chairman of the House Ways and Means Committee, is converting our tax system into a territorial system that stops rewarding companies that relocate overseas and downsize their US -based operations.

"The complexity of the tax code also disadvantages small businesses and family owned companies who cant afford to hire an army of lawyers, and that's what it is, an army of lawyers and lobbyists, accountants, other people can do it, you can't and its not fair to ask you to even think about it".

This point was made emphatically clear through a new Business Roundtable survey that finds that a significant majority of its CEO members believe tax reform is the single most effective action Congress can take to accelerate economic growth over the next year. Does big business really deserve to gobble up more profits? In other, recent proposals, this path has led to economically harmful ideas such as extending depreciation schedules; losing research expense deductions; and imposing "bubble" tax rates. To protect against that risk, Texans pay among the highest property insurance rates in the nation.

"Since that time there has been growing pressure for the U.S.to drop its rate", Dyreng said. Under current law, corporations are required to depreciate the cost of capital investments over several years or decades.

But in a tight economic environment, she hasn't been able to do that. Citing a distributional analysis performed by the Tax Policy Center and the Tax Foundation, the CRS found that, while there were differences between the two groups' projections, both showed a "general pattern of favoring higher-income individuals". The House Bill is a plan that will save Americans from this disaster, and replace it with more choices, and more freedom for American families.

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