The reaction from American business to tax reform is mixed

“CUT, cut, cut!” That is what President Donald Trump wanted to name an eagerly awaited Republican proposal for reforming America’s tax code. He vows that slashing the rate of corporate tax will create millions of jobs. In the end, on November 2nd, Republican leaders in the House of Representatives unveiled the modestly named Tax Cuts and Jobs Act.

Some business leaders cheered. The US Chamber of Commerce called it a “once-in-a-generation opportunity to fix the problem”. The National Association of Manufacturers declared the plan “a grand slam for hardworking manufacturers”. The bill is expected to reach a vote this month in the House, after which it must be reconciled with a Senate tax bill due soon.

The centrepiece of the plan is a big reduction in the headline rate of corporate taxation from 35% to 20%. The proposal also allows capital investment to be deducted in full immediately, rather than over time. It would move America to a territorial system that taxes firms on...

via Business Feeds

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