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from the that-will-help-reduce-the-deficit,-right? dept.
The White House and congressional Republicans are finalizing a tax plan that would slash the corporate rate while likely reducing the levy for the wealthiest Americans
[...] The plan would likely cut the tax rate for the wealthiest Americans, now at 39.6 percent, to 35 percent, people familiar with the plan said Monday. They spoke on condition of anonymity ahead of a formal announcement.
In addition, the top tax for corporations would be reduced to around 20 percent from the current 35 percent, they said. It will seek to simply the tax system by reducing the number of income tax brackets from seven to three.
[...] Republican senators on opposing sides of the deficit debate have tentatively agreed on a plan for $1.5 trillion in tax cuts. That would add substantially to the debt and would enable deeper cuts to tax rates than would be allowed if Republicans followed through on earlier promises that their tax overhaul wouldn't add to the budget deficit.
https://www.apnews.com/d7929cdd15c3437db07147d219b391c4
(Score: 3, Informative) by PocketSizeSUn on Wednesday October 18 2017, @12:28AM
I think 20% is still probably a little high (surprised?).
What we (the US) really should be looking to do is to undercut the low (corporate) tax jurisdictions like Hong Kong (16.5%), and Singapore (17%).
These are the highly efficient city states with low taxes that get to tax a small piece of a massive pie. Hong Kong and Singapore are both huge centers of high finance because of their low tax rate.
By competing directly with Hong Kong/Singapore and other places with a similar to US/Europe quality of living getting companies to move their tax jurisdiction / nexus to the US would allow the US to enjoy a huge boon in tax income.
As it is now the US has the high tax policy of Europe while providing the population benefits far below what Hong Kong and Singapore offer.