Trump Tax Plan May Free Up Corporate Dollars, but Then What?
“What’s driving companies to engage in paper transactions is not our 35 percent tax rate,” he said,
but other countries’ willingness to undercut whatever rate the United States settles on.
To that end, Mr. Trump and the Republican leadership have pushed to slash the corporate tax rate and switch to what is known as a territorial system
that would tax only profits earned in the United States and not those earned in other countries.
To some economists, offering technology companies like Apple
and Microsoft and pharmaceutical companies like Merck and Pfizer a discount on the corporate taxes they would normally owe simply rewards bad behavior.
