A Tax Cut That Lifts the Economy? Opinions Are Split
- 7 years ago
A Tax Cut That Lifts the Economy? Opinions Are Split
Slashing the rate to 20 percent is “a pretty dramatic change in the attractiveness of the United States relative
to other countries,” said Alan Viard, a tax specialist at the conservative American Enterprise Institute.
The idea that you’re going to get a huge spur to growth is delusional.”
Such dismissiveness failed to deter fans of the twin pillars of the House bill: lowering the top nominal
tax rate on corporations to 20 percent from 35 percent, and changing the way global profits are taxed.
“Given the complexity of our U. S. taxation system,” a spokesman said Thursday, “the devil will lie in the details of any new legislation.”
The tax code has rewarded companies for warehousing profits abroad.
What could bite even harder is a proposal to tack a 20 percent excise tax on transactions between multinationals
and their foreign affiliates to deter them from stripping profits out of the United States tax base.
“This will make the United States a better place to invest
and a better place to be headquartered in,” said Mihir A. Desai, an economist at Harvard Business School who has at times complained about the White House’s economic claims.
Slashing the rate to 20 percent is “a pretty dramatic change in the attractiveness of the United States relative
to other countries,” said Alan Viard, a tax specialist at the conservative American Enterprise Institute.
The idea that you’re going to get a huge spur to growth is delusional.”
Such dismissiveness failed to deter fans of the twin pillars of the House bill: lowering the top nominal
tax rate on corporations to 20 percent from 35 percent, and changing the way global profits are taxed.
“Given the complexity of our U. S. taxation system,” a spokesman said Thursday, “the devil will lie in the details of any new legislation.”
The tax code has rewarded companies for warehousing profits abroad.
What could bite even harder is a proposal to tack a 20 percent excise tax on transactions between multinationals
and their foreign affiliates to deter them from stripping profits out of the United States tax base.
“This will make the United States a better place to invest
and a better place to be headquartered in,” said Mihir A. Desai, an economist at Harvard Business School who has at times complained about the White House’s economic claims.