US tax reform is on the cards. It’s no hot news that President Donald Trump wants the tax system reformed. Nor is it any surprise to find that he will start campaigning for it publicly next week. Gary Cohn, the chief economic advisor, gave this information this in an interview with the Financial Times. He stated that Trump’s agenda will ‘revolve around tax reform’ starting next week.
Apparently, Donald Trump is to go on the campaigning trail to justify his reasons for the need for US tax reform. He is to stress why the US needs the tax system reformed. He apparently has no plan for how tax reform can be carried out! This is to be left to the congressional committees.
However, he has stated that he wants any tax reform to include a one-time repatriation of corporate tax on overseas profits and a move to a territorial system. This means that businesses would be taxed only on income earned within the US. Would this be beneficial to Trump’s businesses or those run by his family? Perhaps not! Does it mean that profits made by US firms overseas are to be exempt from corporate tax? Perhaps so!
This news is not new. Donald Trump has been seeking such tax reforms for a few months now. Some believe that this will be good for America while others believe it would be good for those who make a lot of money from overseas businesses. Tax deductions for individuals will be abolished, other than those for mortgages, retirement savings and charity donations.
The White House is also considering abolishing estate and death taxes. Information on tax reforms will be made public from next week. However, the plan being discussed between Republican leaders and the House of Representatives is not that being messaged by the White House. The bill is apparently being drafted and President Trump is planned to promote tax reform at various public events over the coming month.
President Trump firmly believes that his US tax reforms are essential to ‘spur US economic growth.’ The main problem that many people have with this is that Trumps ‘initiatives’ have appeared to be self-serving to many Americans. Whether this is the case or not is a matter for the US political system to decide. Is US tax reform genuinely needed to support American economic growth?
If so, why now? Why not this US tax reform some years ago when a spur for US economic growth was badly needed? Perhaps Donald Trump has the right idea, being a successful businessman. Time will tell whether corporate business practices also work in national terms. Let’s hope so, so the US can avoid another financial disaster.
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