Cut Corporate Taxes Now, Not In A Year
Deroy Murdock, National Review
Yes, we can have a 20 percent corporate tax — starting next month!
Betsy McCaughey, the Republican former lieutenant governor of New York, has discovered the formula for delivering a 20 percent corporate-tax rate in January 2018, as the U.S. House of Representatives wishes, not 2019, as the Senate voted, in an act that flirts with GOP political suicide.
McCaughey, a senior fellow with the London Center for Policy Research (as am I), offers a delightfully simple plan in today’s New York Post: “This beautiful committee,” as President Trump dubbed the House-Senate panel that will reconcile the two chambers’ competing bills, should accept the House’s January 1, 2018, effective date for the corporate tax to plunge from today’s 35 percent rate to the new, paradigm-shifting, highly competitive 20 percent rate. (That’s a reduction of 43 percent.)
And how would conferees “pay for” this massive, history-making tax relief to American business, one year earlier than the Senate wants?
The conference committee should adopt the House’s $1,600-per-child tax credit, rather than the Senate’s $2,000-per-child credit. As McCaughey explains, the ensuing $150 billion savings would cover more than the roughly $127 billion one-year “cost” to make U.S. companies globally tax-competitive — and next month, to boot.