Though corporate and individual tax reform were key components of President Trump’s campaign, there are concerns that these measures could get delayed in Congress. Americans for Tax Reform President Grover Norquist discussed the outlook for corporate tax reform and the potential impact of a border tax.
“One of the key things to point out is whether they pass it in August or September of this year, it will take effect, the lower corporate rate – they’re looking to take the rate to 20% – would take place for the entire year,” Norquist told the FOX Business Network’s Maria Bartiromo.
Norquist called for Republicans to be more clear in explaining that even though corporate tax reform may be delayed until the second half of 2017, it would still be retroactive to January 1.
He then reacted to Republican calls for a border adjustment tax.
“It has a challenge and that is all tariffs, all border taxes are taxes on American consumers. I know sometimes political leaders like to make it sound as if foreigners pay tariffs or taxes at the border, but they don’t. American consumers do.”
Despite concerns about the border tax and how it is received, Norquist was bullish about the overall tax reform plan’s potential impact on the economy.
“It is a piece of a broader tax reform package that is overall tremendously pro-growth.”
Norquist saw the reduction of the corporate tax rate as one of the key factors that could spur U.S. economic growth.
“Taking the corporate rate from 35% down to at least 20% with the goal of getting it to 15%, letting the world know that that’s where we are would be a tremendous driver of growth.”