US: Tax plan to make USA companies internationally competitive - AmpGFX

The research team at Amplifying Global FX Capital points out that Trump’s key advisors on economic policy, Director of the National Economic Council Gary Cohn and Treasury Secretary Mnuchin have outlined a bold and audacious plan to cut and reform taxes.

Key Quotes

“The announcement outlined deep corporate tax cuts (from 35 to 15%), and extension of this much-reduced rate to small and medium sized businesses that currently are required to pass through earnings to their income tax return.”

“It announced an unspecified tax break for accumulated foreign earnings held offshore by American companies to entice repatriation.  And proposed a shift to a territorial corporate tax system, so that US companies will no longer for be liable to pay tax on future foreign earnings.”

“Overall the tax breaks appear huge and virtually impossible to fund in a budget neutral way.  The Trump economic advisors offered no detail on how these massive tax breaks might be paid for.  But Mnuchin did say Treasury modeling assumed big increases in real economic growth and trillions of additional revenue.”