One day there is a trial balloon for a value-added tax. The next, the idea of a carbon tax or a reciprocal tax. And now we are hearing the curve ball of a payroll tax cut. Steve Mnuchin, the Treasury secretary, has thrown cold water on the idea of any tax bill meeting the August deadline.
.. we believe the Republican Party’s lesson for tax reform is this: Don’t try to rewrite the entire tax code in one bill.
.. Instead, the primary goal of Mr. Trump’s first tax bill should be to fix the federal corporate and small-business tax system, which has made America increasingly uncompetitive in global markets and has reduced jobs and wages here at home.
- First, cut the federal corporate and small-business highest tax rate to 15 percent from 35 percent, which is now one of the highest corporate tax rates in the world.
- Second, allow businesses to immediately deduct the full cost of their capital purchases.
- Third, impose a low tax on the repatriation of foreign profits brought back to the United States. This could attract more than $2 trillion
- raising billions for the Treasury while
- creating new jobs and adding to the United States’ gross domestic product.
To help win over Democratic votes .. infrastructure funding ..
financed through the tax money raised from repatriation of foreign profits.