Having the highest corporate tax rate in the world causes a lot of companies, both domestic and foreign, to conduct business elsewhere. Lowering the rate makes it very attractive to bring (back) business to the U.S.
So, the idea is that we immediately slash 20% (35% now to proposed 15%) off all corporate taxes collected... by the majority of US companies...
and we will supposedly make it up AND MORE when the small minority of US companies that use overseas manuevering to avoid taxes will suddenly re-patriate their profits and pay taxes...
and that will make up the 20% we slashed off corporate tax revenue to start.
I haven't seen the numbers... but I doubt it adds up.
Long term, yes, lower corporate income taxes. I'm all for it. In the short term however, we have 15 trillion in debt growing by 2 trillion a year. Slashing 20% from corporate tax revenue doesn't seem like a good short term solution.
I hate to say it, but we need to raise taxes in the short term to bring down the ridulous amount of debt this nation has.
Cut taxes when our financial house is in order and we can afford it.