Trump Pens Op-Ed Championing His Tax Plan As A Path Forward For American Workers
- 7 years ago
President Trump championed his tax plan in an op-ed published by the Milwaukee Journal Sentinel, suggesting it is a path forward for American workers.
President Trump championed his tax plan in an op-ed published by the Milwaukee Journal Sentinel on Labor Day, suggesting it is a path forward for American workers.
While Trump says the plan, “will dramatically reduce income taxes for American workers and families,” he goes on to suggest that the biggest benefits will come from cutting the corporate tax rate.
The president states, over the past 30 years, the U.S. has, “gone from a business tax rate that is lower than our economic competitors to one that is more than 60% higher.”
He continues, “In response to this lack of competitiveness, large corporations have changed their business models to export jobs to other countries and then ship their goods back to the United States.”
Trump says that lowering the rates paid by corporations, “will add millions of jobs, funnel hundreds of billions of dollars into our economy and give America the competitive advantage we so desperately need.”
A number of experts have pointed out that, while such a proposal may sound reasonable in theory, it’s far from guaranteed to go as planned in practice.
The New York Times notes, “Many economists…argue that large corporate tax cuts would do relatively little — particularly in the near term — to boost wages or create jobs. Instead, they would boost corporate profits and benefit the wealthiest Americans who own the most corporate stock. There is little evidence that large tax cuts will prompt American corporations to invest more; they are already sitting on nearly $2 trillion in cash.”
NPR points out that 35% corporate tax rate is not indicative of what’s actually paid, as “Deductions and credits help bring U.S. companies' tax rates below what they would otherwise pay. The effective tax rate for U.S. corporations is only around 18.6 percent.”
It also states, based on a recent report, “that out of 258 profitable Fortune 500 companies, 39 percent paid zero corporate taxes in at least one year between 2008 and 2015.”
Notably, no detailed plan for Trump’s tax agenda has been drafted, so it remains unknown how or if it would ensure the corporate breaks would, indeed, benefit workers.
President Trump championed his tax plan in an op-ed published by the Milwaukee Journal Sentinel on Labor Day, suggesting it is a path forward for American workers.
While Trump says the plan, “will dramatically reduce income taxes for American workers and families,” he goes on to suggest that the biggest benefits will come from cutting the corporate tax rate.
The president states, over the past 30 years, the U.S. has, “gone from a business tax rate that is lower than our economic competitors to one that is more than 60% higher.”
He continues, “In response to this lack of competitiveness, large corporations have changed their business models to export jobs to other countries and then ship their goods back to the United States.”
Trump says that lowering the rates paid by corporations, “will add millions of jobs, funnel hundreds of billions of dollars into our economy and give America the competitive advantage we so desperately need.”
A number of experts have pointed out that, while such a proposal may sound reasonable in theory, it’s far from guaranteed to go as planned in practice.
The New York Times notes, “Many economists…argue that large corporate tax cuts would do relatively little — particularly in the near term — to boost wages or create jobs. Instead, they would boost corporate profits and benefit the wealthiest Americans who own the most corporate stock. There is little evidence that large tax cuts will prompt American corporations to invest more; they are already sitting on nearly $2 trillion in cash.”
NPR points out that 35% corporate tax rate is not indicative of what’s actually paid, as “Deductions and credits help bring U.S. companies' tax rates below what they would otherwise pay. The effective tax rate for U.S. corporations is only around 18.6 percent.”
It also states, based on a recent report, “that out of 258 profitable Fortune 500 companies, 39 percent paid zero corporate taxes in at least one year between 2008 and 2015.”
Notably, no detailed plan for Trump’s tax agenda has been drafted, so it remains unknown how or if it would ensure the corporate breaks would, indeed, benefit workers.