(National Sentinel) Tax Overhaul: President Donald J. Trump was in Missouri earlier today talking up tax reform.
Well, you’d think that, wouldn’t you? But as Jamie Dimon, the CEO and chairman of JPMorgan Chase & Co. and the chairman of the Business Roundtable, writes today in USA Today, “parochial and partisan interests” have prevented serious tax reform for three decades.
And if anything in the age of Republican dominance in Congress, Democrats are in no mood to be accommodating.
If Democrats really believe what they’ve been saying — that they want job and wage growth for all Americans — then they’ll support the corporate tax reductions Trump is pushing, in addition to personal income tax reductions.
As Dimon notes:
This isn’t about helping companies like JPMorgan Chase. Yes, tax reform will help American companies become more competitive, but the real reason to do it is to increase jobs and increase wages.
Under our current corporate tax system, workers bear up to 75% of the corporate tax burden through lower wages. I believe that tax reform should go further than that to boost wages. It should also be used to do more for lower- and middle-income workers by expanding programs such as the earned income tax credit, which already lifts more than 7.3 million workers out of poverty.
He notes further that some $2.5 trillion in corporate profits are “trapped overseas” because the United States’ corporate tax rate — the highest in the developed world — makes it economically more attractive to leave it there than be heavily taxed (penalized) by bringing it to America.
How much growth could American companies experience with an additional $2.5 trillion? How many more jobs would be created?
Republicans have been pushing for tax reform and a reduction in the corporate tax rate for decades, though lately there are far too many #nevertrump RINOs in Congress, and especially the Senate, which could endanger even something like tax reform which should be a slam-dunk.
But Democrats should get on board as well because they’ve been claiming for months now they’re all about economic growth, better opportunities for workers, and higher wages.
“Policymakers have a once in a lifetime chance to fix the tax code, and there are real consequences for failure. A recent survey of Business Roundtable CEOs found 90% believed that any delay in tax reform would harm the economy by causing slower growth, hiring and investment. The other side of that coin is that 76% of CEOs would increase hiring if Congress was successful in passing tax reform,” Dimon writes.
“Democrats should focus on growth,” Sen. Tim Kaine, D-Va., Hillary Clinton’s running mate last year, has also urged. “And how do Democrats plan to grow the economy? If the Republicans are about less taxes and less regulations, we should be about better skills, better jobs and better wages.”
Trump — a lifelong businessman — has a plan to help Republicans and Democrats score big with their voters.
Will Democrats now follow their own advice and step up to fulfill their promise of better jobs and economic growth?
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