Source: The White House
Groups representing retailers responded with support for the outline of a tax plan for businesses and individuals revealed by the Trump administration yesterday with the caveat that the final version should not include a border adjustment tax (BAT) supported by some Republican members of Congress.
“The United States has one of the highest corporate tax rates in the world, and retailers pay the highest effective tax rate of any industry,” said Matthew Shay, president and CEO of the National Retail Federation, in a statement. “Lowering the rate for businesses would significantly improve U.S. companies’ ability to compete in a global marketplace and will drive more investment to the United States.”
A statement issued by Retail Industry Leaders Association (RILA) followed the same theme. “Retailers pay among the highest effective tax rates of all U.S. businesses and provide jobs to more Americans than any other industry. Reform that substantially lowers the rates that retailers ultimately pay will generate job growth and benefit American families in countless ways.”
The Trump proposal would dramatically cut the corporate tax rate from 35 percent to 15 percent. What’s not clear is if deductions currently available to businesses will be eliminated.
The plan calls for individual tax brackets to be shrunk from seven to three: 35 percent, 25 percent and 10 percent. Standard deductions for individuals and couples would be doubled while deductions would be limited to mortgage interest and charitable contributions.
While many contend the plan will spur economic activity, it will also balloon the federal deficit.
The Committee for a Responsible Federal Budget, a non-partisan group that seeks to educate the public on fiscal policy said the Trump plan would cost the government $5.5 trillion in revenues over 10 years.
“Here is some real math: Debt is twice its historical average; higher as a share of the economy than any time outside of the World War II era and growing faster than the economy with no end in sight,” said Maya MacGuineas, president of the group. “Instead of banking on fantasy growth rates to offset debt-financed tax cuts, we should be pursuing sustainable economic growth to lift incomes and reduce budget deficits.”
- Retailers Agree With Trump That Lowering Business Taxes Would Grow Economy – National Retail Federation
- Retailers Respond to President Trump’s Tax Plan – Retail Industry Leaders Association
- Trump Unveils Broad Tax-Cut Plan – The Wall Street Journal
- President Trump Proposed a Massive Tax Cut. Here’s What You Need to Know. – The White House
- Statement on President’s Tax Plan – Committee for a Responsible Federal Budget