The Unified Tax Relief Framework Will Bring Jobs and Businesses Home
"We must reduce the tax rate on American businesses so they keep jobs in America, create jobs in America, and compete for workers right here in America -- the America we love." - President Donald J. Trump
AMERICAN BUSINESSES AND WORKERS GET TAX RELIEF: President Donald J. Trump is supporting crucial tax relief in the unified framework so American businesses will come back to the United States.
The framework will reduce the corporate tax rate to 20 percent.
The framework will cap the top marginal tax rate paid by sole proprietors, S corporations, and partnerships to 25 percent.
For the next five years, American businesses will be able to immediately write off the cost of their heavy equipment and other capital investments.
This will help American businesses afford the heavy industrial machinery and other capital investments they need to grow.
BRINGING PROFITS HOME: The unified tax relief framework supported by President Trump will end the "offshoring model" that encourages companies to keep their profits out of the country.
This plan will stop the "offshoring model," which penalizes companies for incorporating in the United States.
Profits that have accumulated offshore will be subject to a one-time low tax, thereby ending the tax incentive to keep those profits offshore.
To avoid paying high U.S. corporate taxes on foreign profits, American companies often reinvest their money abroad instead of repatriating it to American shores.
Companies hold an estimated $2.8 trillion in earnings offshore, according to Audit Analytics.
The U .S. Treasury Department's Office of Tax Policy has said the American tax system for multinational corporations has "serious problems."
CURRENT SYSTEM HURTS AMERICAN WORKERS AND BUSINESSES: The United States has the highest corporate tax rate among developed economies, a burden carried by American workers.
A crushing tax burden on American companies is really a crushing burden on American workers.
According to one study by the CBO, over 70 percent of the corporate tax burden falls on American workers.
The United States has the highest corporate income tax rate among the 35 industrialized Organisation for Economic Co-operation and Development (OECD) countries, according to the OECD.
The U.S. corporate tax rate has been higher than the OECD average for almost 20 years.
The average total corporate tax rate among OECD nations is 24 percent, while the United States is nearly 40 percent.
The U.S. average corporate tax rate is almost 10 points higher than China's, according to the Congressional Budget Office.
"The United States has the highest corporate tax rate...and despite offering significant additional deductions, exclusions, and tax credits, imposes the heaviest tax burdens," according to new research published in a Brookings paper on economic activity.
Contact: White House whitehouse.gov/the-press-office
THE VICE PRESIDENT: Thank you, General Ford. I want to thank these extraordinary leaders ó the leaders of Nevada both in elected positions and those who are on the frontlines on this issue, and so many more.
The North Carolina Department of Health and Human Services kicks off the Know Before You Go campaign today, a statewide initiative reminding North Carolinians to stay up to date on COVID-19 vaccines and boosters