Trump Rejects Its Own Arguments For Tax Reform

Trump Tax
US President Donald Trump (R) greets National Association of Manufacturers CEO Jay Timmons (L) as he read his meeting at the White House in Washington, US, March 31, 2017.

US President Donald Trump has highlighted the increase in corporate profits, thereby contradicting one of his party’s main arguments for a tax reform.

“‘Stock companies have NEVER earned so much money as now,'” said Trump on Tuesday on Twitter. He apparently stood behind a statement from TV supporter Stuart Varney from the US station Fox, who thanked Trump in his tweet.

Economic representatives and Republican politicians are always justifying the planned corporate tax reform by making companies more competitive through tax relief. The President’s statement could take the wind out of the sails. The Democratic Senator Brian Schatz said on Twitter that it was a strange way in which the Republicans would bring their proposal to lower corporate taxation on the market.

According to data from Thomson Reuters, the largest corporations in the United States are now experiencing significant gains in double-digit percentages per quarter. For the full year, an increase of 11.5 percent is expected, the strongest growth since 2011. In another tweet, Trump highlighted the record high of the Dow Jones stock index of around 22,000 points. The broader S & P index gained 9.4 percent since Trumps took office in January, but increased more strongly with 16.2 percent during the first months of the presidency of Barack Obama.

A corporation tax of 35 percent is currently in force in the USA. This is one of the highest rates in the world. Trump wants to reduce the load to 15 percent. Recently, even a leading senator from his party, the Republicans, had described a 25 per cent reduction as a kind of miracle. The Republicans in the Senate reckon with the beginning of debates in Congress in early September. According to the presidential office in the House of Representatives in October, The Senate could then follow in November. However, there is also a dispute over this issue. After the failure of Obamacare’s health insurance, the tax reform for the Republicans in Congress is the next important project.