As part of a cascade of tweets Wednesday night, President Donald Trump said one of the major incentives for a tax overhaul, including cuts, was making the USA more competitive with the rest of the world. Or, he added, "If they have to go higher they they will go higher".
Reform is a key concern for the retail industry, which holds a unique position regarding both workers and the corporate tax rate.
Why Our Corporate Tax Rate Isn't Actually 35%. Hints are already starting to emerge from the president's meeting Tuesday with a handful of Democratic senators from red states and Mr. Mnuchin's concession that the administration might be willing to seek a bipartisan deal if a Republican-only strategy is unworkable.
But in reality, few companies pay that rate.
Manchin said he felt lowering taxes would help with the national debt because he said he felt it would make the nation more competitive.
An employee of an American corporation now forfeits thousands of dollars each year because of the high corporate tax rate.
Trump urged lawmakers gathered to discuss tax reform not to forget the immigration issue as they dig into the fall agenda.
Yet many still argue that corporate tax reform would not benefit workers.
According to the Government Accountability Office (GAO), almost 20% of large American companies that reported profits in 2012 didn't pay any corporate income tax. The Trump tax plan would boost the incomes of millionaires by at least 5% right off the top. A 3.8 percent income tax for couples earning over $250,000 a year would also be slashed. The report also does not factor in changes in tax rates, actual domestic tax rates, the economy or any factors that affect hiring.
But that assumes Republicans can get much further into this process than where lawmakers now stand. Paul Ryan said Wednesday he thought accomplishing tax reform would be the reason Republicans keep their majorities, but even lawmakers seemed to think that was an overblown, over-simplified rationale.
That's because paying for massive tax cuts means eliminating numerous legal tax loopholes that these companies take advantage of.
"China has a business tax rate of 15%", he tweeted. "That would be wonderful if we could get it down there", Sen. "I believe we know enough about this that we can do this in 2017".
That doesn't sound terribly promising.
The state-and-local-tax deduction, or SALT, has always been a target for tax policy wonks who see it as an unwise federal subsidy that is mainly claimed by the wealthy.
Just look at Amazon.com Inc.
Brady said at a Politico Pro event September 14 that more clarity on the treatment of corporate interest deductions will be released as part of the tax framework.
Companies will go where their money is treated best, which is why we at Money Morning focus on CEOs, not on politicians. You like your plan?
Take Amazon, for example. You could accumulate shares of the $990 stock one-by-one, as you can afford them.
That's a stunning number, more than the average American worker's monthly wage.