Opinion: Elected officials need to get the corporate tax rate as low as possible
EDITOR'S NOTE: Boris Epshteyn formerly served as a Senior Advisor to the Trump Campaign and served in the White House as Special Assistant to The President and Assistant Communications Director for Surrogate Operations.
WASHINGTON (Sinclair Broadcast Group) - Tax reform is key.
Overhauling the tax code is, correctly, the main focus of the Trump administration heading into the end of the year.
At the center of the White House plan is lowering the corporate tax rate. That rate is currently at 35 percent, the highest of any developed country, according to the Organization for Economic Co-operation and Development. President Trump has repeatedly called for it to be reduced to 15 percent.
Lowering corporate taxes will lead to better productivity, innovation and more jobs. The less money companies spend on taxes, the more they can spend on growth and employees.
Some critics say that a 15 percent corporate rate is not possible and even absurd to suggest. House Speaker Paul Ryan is aiming for a rate in the mid-to-low 20s. The president has continued to push back and stand his ground on 15 percent.
Of course, as always, the overriding issue becomes how do you pay for it?
The White House was hoping to offset the cost of tax reform by repealing and replacing Obamacare. That could have freed up approximately $1 trillion in savings. That didn’t happen.
The White House is now left with a choice. They could push for temporary tax cuts, similar to what President George W. Bush did. The other choice is to save money by getting rid of state and federal tax deductions as well as closing loopholes.
Here is the bottom line: our elected officials should not approach the lowering of the corporate tax rate with a defeatist mentality. They need to get to as low of a rate as possible to see the most return for American businesses and the American people.