A 15% corporate tax rate has been a key part of President Trump’s tax reform plan. With Trump showing more willingness to work with Democrats in an effort to push through legislation, many are questioning the president’s ability to achieve the desired 15% corporate tax rate.
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Office of Management and Budget Director Mick Mulvaney addressed those concerns on this morning’s Varney & Co., “We’ll go to whoever will help us get it down to 15%. The president and I just talked not 15 minutes ago and he’s adamant about this 15% rate, pointed out accurately by the way that even in China, for certain companies, the rate is 15%. So to think we can compete internationally at 20% and 25% [is] not sitting very well, we’re pushing hard for that 15% number, Stuart.”
According to Mulvaney, the potential repatriation that would result from a 15% corporate tax rate would be a boost to the U.S. economy.
“You switch from a system that encourages businesses to leave the United States to one that encourages businesses to come here. And that has an impact not on just things like the trade balance but on employment, on economic growth.”
When Varney asked why Democrats would be opposed to such a low corporate tax rate, Mulvaney replied, “I’ve been around the town long enough to be just a little bit cynical and know that any corporate tax reduction will be portrayed by some members of the other party as giveaways for the wealthy, giveaways for the big corporation, giveaways for the top 1%. So, it’s fairly easy to demagogue it, to politicize that issue.”
Mulvaney then explained why the administration does not want the tax package to be revenue neutral.
“We want the biggest reduction we can get, we want the most sweeping reform that we can get and I do not think that revenue neutrality is at the top of our priority list.”
Mulvaney sees the potential economic growth from tax reform as a long-term boost to revenue for the government.
“You and I have talked before about this concept of MAGA-nomics, 3% growth again for the foreseeable future, what that does to the size of the economy, what it does in terms of creating jobs, what it does in terms of raising money for the government.”