The corporate tax rate for American companies still stands at 39% if you include taxes at the state level — we still have the dubious distinction of leading the world when it comes to the highest business tax rates.
TIMELINE ADJUSTMENT: Senate Majority Leader Mitch McConnell (R-KY) told Politico this morning that tax reform was on the agenda—but that the resolution of the ongoing Republican effort to pass a healthcare-reform bill must come first. The majority leader expressed skepticism about meeting the president’s preferred deadline of tax reform by early August: “I think finishing on tax reform will take longer. But we do have to finish the health-care debate, up or down, win or lose, before we go to taxes.”
DIMON SAYS: Jamie Dimon, President and CEO of JPMorgan Chase, argued on Tuesday that corporate tax reform will not only benefit business—it will result in robust gains for American workers as well: “It’s about capitalism…Lower taxes are not going to mean that businesses are going to have forever higher profits. It’s going to go somewhere. And though it sounds counter-intuitive, studies show that [the] thing that is impacted the most from lower corporate tax rates will be wages.” Dimon reiterated the disproportionate impact of high rates, arguing that “we have been driving brains, capital, business, and research away from this country…It’s not hurting J.P. Morgan Chase. It’s hurting the average American worker.”
AN EVEN LOWER IRISH RATE?: Tom Maguire, a tax partner with Deloitte in Ireland, argues in The Independent that, in response to British rate reductions and proposed rate reductions in the United States, Ireland should further decrease its already low 12.5% corporate income tax rate in an effort to hold its ground, and to demonstrate “that we value foreign direct investment (FDI) here and want to ensure that international (and all) companies based here can continue to benefit…even when the facts change.”
$50 BILLION TAX RELIEF FOR CHINESE COMPANIES: The Asian Review reports that “Chinese Finance Minister Xiao Jie is promising 350 billion yuan ($50.7 billion) in corporate tax breaks this year, aiming to stimulate the economy and keep companies frustrated with heavy taxation from seeking greener pastures overseas.” The fresh tax relief comes amid wider tax reform in the Chinese economy—with the official replacement of the retail sales tax with a value-added tax complete, and the progressive lowering and simplification of VAT rates underway.
OECD TO INDIA—LOWER CORPORATE RATE: The influential Organisation for Economic Co-operation and Development recommends that India lower its corporate tax rate to 25%, The Indian Express reports. The OCED believes tax reform is an important component of India’s future economic prosperity, advocating for a “gradual reduction in the corporate income tax …while broadening the tax base and providing certainty regarding tax rules and their implementation.”
WE WANT TO KNOW: Can the 115th Congress and President Trump successfully tackle Tax Reform in 2017? Log on to our Facebook page and let us know what you think!
AND, REMEMBER THE RATE PLAN: The U.S. corporate tax rate is already the highest in the world, which is why we believe our plan to fix the tax code, to set the corporate tax rate at a globally competitive 25% or less, to close tax loopholes, to keep American companies in America, and to enable the U.S. economy to grow resulting in a higher standard of living for American workers is the best path forward.
CONTACT US: For questions or for additional resources, please contact Michael DiRoma of The RATE Coalition and QGA Public Affairs at firstname.lastname@example.org.