Published: Thu, August 31, 2017
Medical | By Rita Mcdonald

'It's time' for tax reform

'It's time' for tax reform

Trump argued that the rest of the world subsequently lowering their tax rates demanded more corporate tax cuts in the United States.

Trump's pitch leaned heavily on the economic benefits he said tax reform could deliver and aimed to get ahead of Democratic criticism that Trump's tax reform plans would disproportionately benefit the wealthiest Americans, as independent tax experts have estimated.

The speech is scheduled to begin at 2:30 p.m. ET at the Loren Cook Company manufacturing plant. Thus, despite his promises to workers, President Trump's tax plan would increase inequality by prioritizing those who are already doing best.

There is broad agreement that the U.S. tax code - which runs thousands of pages - needs to be simplified.

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Trump said in April he wants to lower the tax rate on businesses to 15 per cent, but it is not clear if this rate will remain or ultimately be revised upward.

"When you hear the president talking about ending the rigged system, I think another way to phrase that is restoring a fundamental American precept, which is fairness", said another White House aide, also speaking on condition of anonymity.

The officials, who asked not to be identified during a conference call with reporters, said those ideas would make for a "bipartisan" message because the notion of a rigged economy cuts across the spectrum of USA political ideology.

Republicans hope to achieve tax reform by the end of the year, but reaching agreement on the details will be tough, analysts say. "That would cause investment to flow overseas, and that would reduce the capital which workers in the United States have, so it should reduce wages".

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He pointed out that, during Trump's campaign, the then-Republican candidate promised to protect Medicaid and expand healthcare for everyone. "Democrats believe that not one penny of tax cuts should go to the 1%".

Trump rallied supporters as he tries to bring tax reform to the front of the agenda for Congress, as lawmakers return from the August recess next week. But when he made the point of seeing the other side of the job creation problem from the would-be worker's point of view, President Trump took an important step forward.

Republicans control both chambers of Congress, but there is hardly a consensus on tax reform and talks on the issue look set to be arduous.

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