Investor’s Business Daily offers this staff editorial today in anticipation of President Trump’s tax plan specifics coming soon.
One other thing he suggested he would do: A one-time tax on repatriated overseas corporate retained earnings that are now kept in overseas accounts to avoid onerous U.S. taxation.
The estimated amount of these funds is staggering: $2.4 trillion. Even repatriating just two-thirds of that amount at 10% would add close to $160 billion to federal tax revenues.
Taken together, these form the core of an extremely supply-side oriented economic growth program that would create jobs and new incomes.
Nor is this a “tax cut for the rich,” as some have claimed.
As IBD noted last September, the “dirty little secret” of corporate taxes is that corporations don’t actually even pay them. Average Americans — that’s you — do. You pay it through lower wages, lower returns on investments and retirement accounts, and higher prices for the things you buy.
Dan Mitchell weighs in on what we know about President Trump’s tax plan(s):