David Rosenbloom Comments on Trump's Proposed 15% Corporate Tax Rate
Trump's White House has promised an agreed-upon plan by early September. But with no details emerging from weekly, closed-door tax meetings between his advisers and congressional leaders, tax professionals and policy analysts have begun to fear that a shallower cut is the most likely outcome. That would jeopardize Trump's goal of spurring job creation and economic growth, and do little to prevent U.S. companies from shifting their income and tax liabilities offshore to lower-tax countries, economists say.
The rates that Trump and Ryan want are “almost certainly a pipe dream,” said David Rosenbloom, an international tax lawyer at Caplin & Drysdale who served in the U.S. Treasury Department from 1978 to 1981. “They don't know how to pay for a cut of that magnitude.”
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For multinationals, 28 percent “is not something they'd say, sign me up for that,” said Mazur, now the director of the Urban-Brookings Tax Policy Center.
Caplin & Drysdale's Rosenbloom agreed. “I suspect that a 28 percent rate will please no one,” he said. And of the talks underway in Washington, his view was dimmer still: “When all is said and done, there's a lot more said than done.”
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Excerpt taken from the article “Corporate Tax Rate at 28% Seen as More Likely Than Historic Cut” by Lynnley Browning for Bloomberg.