Excerpts from The Hill
By: Alex Hendrie
Wednesday, June 7, 2017
"Last month, President Trump released a set of tax reform principles that serve as an excellent first blueprint toward enacting pro-growth reform. The plan to lower the tax rate for all businesses to 15 percent and enact a modern, territorial system of taxation would help to reinvigorate the economy and serve as a catalyst for reaching three percent economic growth, as the president has promised.
"The plan will also lead to a simpler tax code and lower the tax burden for middle class families by doubling the standard deduction to $12,000 for an individual ($24,000 for a family), reducing the number of brackets to three, and consolidating or eliminating existing tax credits.
"Each of these proposals are undeniably pro-growth …
…
"The corporate rate of 39 percent (35 percent federal plus an average 4 percent state rate) is far higher than the average rate in the developed world, which is just 25 percent. Businesses organized as pass-through entities face even higher tax rates, reaching as much as 50 percent in some states.
"These high rates mean businesses are unable to compete with foreign competitors that have aggressively reduced their rates. In contrast, the U.S. business rates remain barely unchanged three decades after President Reagan signed tax reform.
"Lowering the corporate tax rate will again ensure American companies are able to compete with foreign competitors, and will ensure start-ups and small businesses are able to innovative and thrive.
…
"Trump’s tax plan already achieves many important objectives such as tax cuts and simplification for individuals, and lower rates and international competitiveness for
businesses …"
Read the full op-ed here.
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