What are the 7 reasons why Trump's and the Republican's plan to cut corporate taxes is completely nuts?
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By David Morgan
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House Republicans, as part of their tax reform plans, have their sights on massive corporate tax cuts.
A Donald Trump Tuesday tweet bragged about corporate America's high profits under his presidency. He tweeted: "Corporations have NEVER made as much money as they are making now."
Critics say Trump was undermining the Republican argument that cutting corporate income taxes is needed so that businesses can be more competitive.
However, cutting corporate taxes doesn’t make much sense. “The largest U.S. public companies have seen profits accelerate in 2017, with quarterly earnings rising at a double-digit pace compared with a year ago, according to Thomson Reuters data. Full-year earnings are expected to be up 11.5 percent, which would be the strongest growth since 2011,” according to Reuters.
“But there is little consensus on the issue. The White House insists on cutting the corporate rate to 15 percent, while House Republicans favor 20 percent. A top Senate Republican this week said lawmakers would be lucky to get it down to 25 percent.”
Senate majority leader Mitch McConnell said Congress will take up tax reform after Labor Day. The White House would like to see a House vote on tax legislation in October and a Senate vote in November.
Nevertheless, no matter how much they cut, the Republican reasoning, as it has been since Reagan, is simply more trickle-down nonsense that will make the rich richer and explode the federal budget. By the way, on Reagan's watch, record deficits raised the national debt from $997 billion to $2.85 trillion.
