"Make no mistake, what Trump and Republican leaders in Congress are proposing is not tax reform", Frank Clemente, executive director of Americans for Tax Fairness (AFT), said in a statement on Tuesday. Speaking at a manufacturing company in Springfield, Missouri, the birthplace of Route 66, U.S. President Donald Trump laid out his case for tax reform and reducing the burden of the tax system on businesses and individuals. And I don't want to be disappointed by Congress. Currently, the USA is one of the few countries in the world that taxes businesses on worldwide earnings once they are brought back into the country.
The president told his supporters that Democrats are standing in the way of tax reforms that would put more money in their pockets, 'just like they obstructed so many other things, including administration appointments and healthcare'. And the ones who don't work with him, we need to work on getting them out of Congress.
In practice, that system, along with the 35% corporate tax rate sees many major companies decide against repatriating their profits in order to keep them intact.
'Our jobs will both stay here in America and come back to America. They will love earning a big, fat, lovely paycheck. Over the last couple of months, the White House has released its goals for tax reform. While the speech was short on detail, the broad objectives outlined by the President provide a good starting point for thinking about what a potential tax reform could look like.
Above all, the mission of the committees is to protect American jobs and make taxes simpler, fairer, and lower for hard-working American families.
Pointing to a recent report (pdf) that analyzed 92 publicly held, profitable corporations that already benefit from a low effective tax rate, Sarah Anderson of the Institute for Policy Studies affirmed AFT's position, calling the notion that corporate tax cuts bolster job growth a "myth".
In reality, AFT notes, "working families will be the big losers under Trump's tax plan".
Tax Policy Center: The Implications of What We Know and Don't Know about President Trump's Tax Plan - "Using traditional budget scoring, TPC finds that the tax cuts outlined by the White House in April would reduce federal revenue by $7.8 trillion over the next decade".
Trump has claimed, for instance, that a huge corporate tax cut would result in an "explosion of new business and new jobs".
The biggest thing is that they all agreed to stop supporting the border adjustment tax.