I am backing President Trump’s efforts for a major tax reduction and reform plan because I think it will create one of the greatest economic booms in history.
Despite serious concerns about some provisions, buried in the Senate and House tax bills is a golden nugget.
The final tax plan won’t be hammered out until the House and Senate each pass their respective bills and send them to the conference committee where the president can truly weigh in.
So far everybody has been talking about the individual and business tax rates, but the true “gift” of the Trump tax plan will be in the proposed special rate for businesses that repatriate money from abroad.
Today, close to $3 trillion in profits sit in the coffers of U.S. company subsidiaries all across the globe. These companies have refused to repatriate these funds because tax rates here are confiscatory — among the highest in the developed world.
Lowering the repatriation tax rate to just 10 percent, as proposed by the Senate plan, will yield tremendous results. Assuming $2.5 trillion is brought back into the U.S. economy, it will serve as the greatest stimulus ever.
Consider that Obama’s stimulus of 2009 amounted to more than $850 billion. This will be almost three times that amount!
This one part of the tax plan will drive the economy for the next 10 years.
Everyone will benefit. And President Trump will see an open path for re-election in 2020. This will happen despite the protestations of CNN, MSNBC, and the elite class.
But there are also poison pills in the tax plans floating through Congress.
Former Bush Ambassador Earle Mack has written in The Hill about the inequities of the individual tax cuts versus the business cuts. For example, the individual tax cuts sunset after 2025.
(Excerpt) Read more at newsmax.com ...
