Many people in both parties agree that the United States needs corporate tax reform, but we have a harder time passing tax reform than our international competitors. Will we succeed this year?
“The U.S. corporate tax rate has been at 35 percent since 1993.”
The United States has been blessed with a system of checks and balances that require the House, Senate, and Executive Branch to sign off on new laws. This has the benefit of ensuring that legislation has broad appeal. It prevents much damaging legislation from passing, but it also makes it harder to pass worthwhile legislation.
In contrast, other countries can announce new tax laws and they pass right away. British Prime Minister Theresa May can announce that the top U.K. corporate rate will decline to 17 percent in 2020, and she has the power as leader of the ruling Parliamentary party to make it happen.
Prime Minister May and other leaders can lower their tax rates without having to prove revenue neutrality. Canada has steadily reduced its tax rates over the past 20 years....
Read the entire piece here at The Hill
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Diana Furchtgott-Roth is a senior fellow and director of Economics21. She also served on the transition team for President Donald Trump. Follow her on Twitter here.
This piece originally appeared in The Hill