A group of Republicans are trying to thwart President Trump’s plan to change the tax code. “I’m not very enthused about it,” said Republican Utah Senator Orrin Hatch, said about the corporate tax plan. Hatch is the chairman of the Finance Committee. (via Associated Press)
Texas Senator John Cornyn is also questioning the job-creation tax plan. To entice companies to stay or return to the United States, we have to reduce our corporate tax rates – which are the highest in the entire world. “The question is, who is going to pay the tax?” Senator Cornyn asked. “Is it going to be our citizens?”
President Trump and the Republican majority are the first national leaders in three decades to push for a tax code overhaul. The House plan would drastically reduce the 35 percent tax on company profits.
The current plan is filled with special exemptions, deductions, and various credits. The cumbersome and confusing corporate tax plan would be replaced with simple “border adjustment tax.”
Trump’s plan will have Americans companies, which sell or produce products in the United States, to pay only a 20 percent tax on business profits. If the company exports its products, the profits from such sales would NOT be taxed in America.
Foreign companies who import products into the United States would also have to pay the border adjustment tax. The plan being pushed by Trump and sensible Republicans would help blue collar workers and middle class Americans, who are struggling to compete with cheap foreign labor.
House Speaker Paul Ryan and Texas Representative Kevin Brady, the chairman of the tax-writing House Ways and Means Committee, are championing the new corporate tax plan. Representative Brady believes the proposed tax reform plan will give a much needed boost to American manufacturers.
“This tax has a simple but powerful principle, which is every product and service that is consumed in the United States will have an equal business tax rate of 20 percent,” Brady stated. “That not only levels the playing field between our foreign competitors in America, it gives our made in America products a fighting chance both here and abroad and eliminates any tax incentives to move U.S. jobs or manufacturing and research overseas.”
House Republicans behind the plan staunchly maintain the new tax structure would generate more than $1 trillion in revenue over the course of 10 years. No Democrats have signed on to support the plan.
The border tax adjustment can pass without a problem as long as ALL Republicans stay together and focus on the big picture — jobs. It is not the government’s duty or its place to create jobs, but it is necessary for our leaders to facilitate an environment where the private sector can thrive.
Americans businesses both large and small are barely surviving. It is impossible to go little more than a week without hearing of more stores closing. Highly successful and long-standing retailers like Macy’s JC Penney, Elder Beerman, Kmart, Sears, and host of others, closed their cash registers for the final time during the past eight years.