U.S. President Donald Trump and Republicans in Congress would have a hard time slashing the corporate tax rate to below 26 percent, even if they eliminated almost every business tax preference, according to a study released on Wednesday. I'm sure the president will argue for 15 percent.
Pinar Cebi Wilber, Ph.D., is chief economist at the American Council for Capital Formation, a nonprofit organization advocating tax, energy and regulatory policies that facilitate saving and investment, economic growth, and job creation. And during a speech in Missouri late last month, he warned Congress not to disappoint him on tax reform. "We've been working closely with the leadership in the House and Senate and we're looking at a combined plan", Mnuchin said in his first television interview after he was confirmed by the Senate.
This is, after all, the party that repeatedly and redundantly passed a series of Ryan budgets that paid for tax cuts with the same kind of deep cuts in low-income programs (plus Medicare) that HFC members dream of each night. "You'll see where we're going on individual rates". This element is more arcane than a simple rate reduction but no less critical to the ability of American companies to reinvest here at home.
Even the low end of that estimate is far too much. However, China's corporate tax rate is technically 25 percent, with some companies meeting qualifications to have tax rates reduced to 15 percent.
That proposal, favored by House Speaker Paul Ryan, R-Wis., might have raised a trillion dollars over 10 years but generated fierce opposition from some businesses. It is immensely unfair that "47 percent" of Americans pay no income taxes while most of us have to.
The reform blueprint Paul Ryan was peddling previous year balanced the numbers using a Border Adjustment Tax. I work closely with the national security staff on the - whatever issue of the day that we're dealing with and have great working relationships there. "It means tax "reform" without real tax cuts", he wrote. The report also does not factor in changes in tax rates, actual domestic tax rates, the economy or any factors that affect hiring.
"Move fast Congress!" the President said on Twitter.
Tax cuts have become the GOP's MacGuffin. But Sen. Rob Portman (R-Ohio) said at the hearing that such a move might reduce the incentive to save, adding that people don't save enough now.
And that's if Trump gets everything he wants.
At some point they might even begin to ask: What good is Trump if he can't get us anything we really want?
That doesn't sound terribly promising.
Given labor's share of the corporate tax burden, reducing the tax rate to 20 percent would raise wages by between $32 billion and $97 billion - enough to support between 500,000 and 1.5 million new private-sector jobs. "We've taken so many hits on everything else". "And so that's why we're going to give it a shot". You like your plan?
Take Amazon, for example.
House Budget Chairwoman Diane Black of Tennessee said Wednesday it's unlikely that the budget resolution will reach the House floor this month. "We have a once-in-a-generation opportunity to do just that".
That's a stunning number, more than the average American worker's monthly wage.