In his speech inside a Springfield manufacturing plant Wednesday, President Donald Trump called on the crowd to vote out of office members of Congress who go against his suggestions to overhaul America's tax code.
He stressed that broad swaths of American society would benefit from corporate tax cuts that would make US companies more competitive. This is probably a good sign: too often, when lawmakers talk about tax reform, they focus only on the benefits of lower tax rates.
We strive for a simpler system because filing taxes should be as easy as filling out the back of a postcard.
The White House's stated goal is to adopt tax reform by the end of the year, but that's a tall task both technically and politically.
The Trump administration said his tax reform plan for April 2018 was to slash the number of tax brackets from seven to three and bring the corporate tax rate down to 15%. Because of our high tax rate and awful, outdated, bureaucratic rules, large companies that do business overseas will often park their profits offshore to avoid paying a high United States tax if the money is brought back home.
"Second, we need a competitive tax code that creates more jobs and higher wages for Americans", said Trump.
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But he implored him to stop saying so publicly, according to transcripts of the January 27 call obtained by The Washington Post . Now he has threaten to shut down the government if Congress doesn't give him money to pay for the wall.
Missouri State Treasurer Eric Schmitt says, "People deserve it".
"At this point Congress must more fully turn its attention to and accelerate its effort to enact tax reform, which will grow the economy and create jobs", he wrote.
Schumer tells reporters that the tax overhaul plan should not increase budget deficits and should be written by both parties, not just the president's fellow Republicans.
Of course, if Trump and Republican leaders were to come right out with a pure tax cut that would add trillions to the debt, the blatant hypocrisy might swamp the effort.
"We have no choice!" This is actually not a trivial point: every tax change affects the USA economy differently, and lawmakers should be careful to choose tax changes that offer the biggest economic bang for their buck.
He said that the United States has haemorrhaged jobs to countries such as Ireland because their economic policies have worked.
Trump has been pushing for Congress to take swift action on tax reform when it returns to session in September. And while the corporate tax rate is the highest of the 35 advanced economies in the Organization for Economic Cooperation and Development, the overall USA tax burden is among the lowest. We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones.