No evidence for Biden claim that Trump tax cuts encouraged corporations to flee US, proponents say
While President Joe Biden and his administration claim the 2017 Trump tax cuts need to be overhauled in part because the law incentivizes offshoring, proponents of the GOP tax cuts say there is no tangible evidence to support that assertion.
Gess, did not those tax cut increase in american jobs? Did not the unemployment go down?
In Biden’s newly proposed “Made in America” tax plan, which aims to alter the corporate tax structure in order to pay for his $2 trillion infrastructure package, the administration asserts that the Tax Cuts and Jobs Act “created new offshoring incentives.” The president has also hinted that the tax bill moved jobs overseas while on the campaign trail.
Are they stupid? By raising taxes the incentive to move jobs and manufacturing our of the us is greater (not less).
“[Former President Donald Trump’s] 2017 tax bill slashed taxes on companies that sent production and jobs overseas,” Biden said during a September speech.
Biden must be demented to think that.
William McBride, vice president of federal tax and economic policy with the Tax Foundation, a nonpartisan think tank that generally supports lower tax rates, said that his organization spent time trying to find evidence that the Trump tax law contributed to offshoring but came up empty-handed.
So, no evidence at all. FAKE NEWS! Standard dem talking points!
Proponents of the GOP tax cuts say the legislation actually encouraged corporations not to offshore — that is, moving production and jobs overseas — and altogether ended corporate “inversions.” Corporate inversions are when a U.S. multinational company merges with a smaller company in a low-tax country to establish residency there and reap the benefits of the lower tax rates without significantly changing its operations in the U.S.
and example of this is:
In the years prior to the Trump tax cuts, corporate inversions were a common occurrence, with dozens of companies merging with foreign associates in order to pay lower taxes. For example, in 2014, Burger King merged with Tim Hortons and became a subsidiary of Canada-based Restaurant Brands International. Fear of more inversions was a major factor in why Republicans were seeking a tax overhaul to begin with.
So that tax cuts came so that corporations could NOT take the tax dollars away from the us.
“It ended inversions as far as we can tell,” the tax expert told the Washington Examiner. “It wasn’t a small effect, it completely ended inversions. There have been no inversions that we are aware of since the law was changed.”
But now with biden’s $1 TRILLION corporate tax scheme, what business would be dumb enough to now seek “inversion” to maximize profits.
Sen. Pat Toomey, the ranking member of the Senate Banking Committee and a major proponent of the Trump tax cuts, also pointed to the 21% corporate tax rate in highlighting the effect that the TCJA had on inversions. He additionally attacked the notion that the bill incentivized offshoring of jobs by noting that before the COVID-19 pandemic, unemployment rate was at its lowest level in decades.
Don’t talk about facts, man!
“Moreover, contrary to his assertion that our tax reform caused some dramatic increase in offshoring, in fact, unemployment rates were at historic lows, prior to the pandemic,” Toomey said. “We should be trying to get back to that economy. Tragically, the massive tax increases President Biden is proposing will make it much harder to do so.”
Of course. They want a socialist/depend on the gov for everything.
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