Tax cut not what’s needed
The country doesn’t need a tax cut. The economy expanded by 3 percent in the most recent quarter. Corporate earnings are strong. The Dow Jones Industrial Average stands at 23,434, and interest rates, though higher due to Federal Reserve decision-making, remain at low levels. Yet, on Thursday, Republicans in Congress completed work on a budget resolution that calls for as much as $1.5 trillion in tax cuts during the next decade. ... President Trump and congressional Republicans talk about delivering landmark tax reform.
They do so, in part, to dress up the potential achievement, Republicans in need of a political success after much faltering this year. Unfortunately, this effort lacks the substance of the true advance in the Reagan years, the result of expert analyses from varied perspectives, hearings, debate and consensus-building.
Ideally, Republicans would focus on what the country needs, starting with repairs to the corporate tax system.
Many cite the relatively high corporate rate of 35 percent. Yet the effective rate is around 20 percent, indicating the many exemptions and loopholes.
Thus, the logical response: End the tax breaks to deliver a lower rate, tracking the trend among peer countries, adding to overall competitiveness.