Tax Reform a “First Priority” Under the Trump Administration
President-elect Donald Trump has been making a number of administrative appointments over the last few weeks. On Wednesday, President-elect Trump nominated a former Goldman Sachs partner, Steven Mnuchin, to be the next U.S. Secretary of the Treasury. As treasury secretary, Mnuchin is set to have a significant hand in shaping and implementing the next administration’s financial and economic legislative priorities.
The jury is still out on what kind of economic proposals President-elect Trump will prioritize, but Mnuchin hinted tax reform would be high on that list telling reporters earlier this week, “Our first priority is going to be the tax plan and the tax plan has both the corporate aspects to it, lowering corporate taxes so we make U.S. companies the most competitive in the world, making sure we repatriate trillions of dollars back to the United States, and the personal income taxes where we’re going to have the most significant middle income tax cut since Reagan.”
Mnuchin and Trump’s statements on tax reform have certainly been encouraging, but business owners should take a “trust but verify” approach. The U.S. tax code has not been significantly updated for the last 30 years and there are many problems that need to be addressed. These include uncompetitive high rates, unequal rates on corporations compared to small businesses, the double taxation of profits earned overseas, the complexity and cronyism of the code, and the double taxation on income that is saved or invested.
Conservative-based tax reform can create millions of jobs, help alleviate poverty by raising living standards, and finally get our economy out of this historically slow economic recovery. This tax reform plan should include simplifying the tax code, lowering and equalizing rates on individuals and businesses of all sizes, repealing the death tax, ending double taxation on savings, investments, and corporate profits earned overseas, and riding the tax code of cronyism.
While many tax plans are under consideration, President-elect Trump, Steven Mnuchin, and Republicans in Congress must work together to pass this kind of conservative, comprehensive, and pro-growth plan soon after Trump takes office.