President Trump is working with congress to implement a new tax plan, a cornerstone of his campaign platform. This is going to be arguably the largest tax overhaul in our nation’s history. The critics of this plan claim it’s just a tax cut for the rich, but they couldn’t be more wrong. Although the tax overhaul is comprehensive, i’d like to focus on what I believe are the three most important parts.
The United States has an incredibly high corporate tax rate. Some people argue that this is a way to curb “big business”, but in reality all it does is cripple economic growth and drives companies overseas. Lowering the corporate rate from 35% to 20% will allow for massive investment and expansion of America’s corporations. It’s time that we give our job creators a fair playing field in the age of globalization.
Another important aspect of the plan is a one time discounted repatriation of funds from overseas holdings. U.S. corporations currently hold $2.6 trillion of profits overseas in order to avoid paying the current 35 percent corporate tax rate. The GOP plan allows for a one time repatriation “holiday” for companies to bring back these profits at a much discounted rate of 10 percent. The impact this would have on the economy cannot be overstated. It will give the government a massive amount of tax revenue. It will also give a major cash influx to our companies to invest in capital, hire workers, and compensate stock shareholders. The lower corporate rate along with this repatriation will help jump-start a period of economic growth like we have not seen in many years.
The third aspect that I would like to highlight is the fact that the plan calls for a complete streamlining of the tax process. It is currently far too complicated and burdensome for the everyday American to file their tax return. Why should people have to buy a computer software system and spend a large amount of time simply to pay their taxes? It should be a far more streamlined and less complicated process and that is exactly what this plan calls for. There are even plans to make it so simple that individual tax returns can be filed on a postcard, and I think that is excellent. This is not a knock against accountants, as they will still certainly be needed for business taxes and more complicated tax filings. But I believe the average working class American should be able to file their tax return in a quick, efficient, simple way.
Does this tax plan give a break to the rich? Yes. Does this plan give a break to the working class? Yes. Does this plan set the stage for unprecedented economic growth? Absolutely. I believe we as a country need to end the class warfare rhetoric. I believe the rich people of this country should pay more than the working class. But I don’t believe that we should crush tax reform simply because the rich get a break. Every single American will get a tax break, and that’s what's important. The government’s job is to not control the economy, but simply give it the tools it needs to flourish and that is exactly what a streamlined efficient tax plan will do.
For far too long, congressional democrats have championed themselves as being the party of the working class. Yet at a time they have a chance to give a legitimate boost to the workers of this country, they are choosing to leave them out to dry. I’m thankful that President Trump and his allies in congress are committed to the workers of this country and are working hard to get this deal done.
Alexander Grzelak is a campus correspondent for The Daily Campus. He can be reached via email at email@example.com.