Arizona economists say Trump tax code will keep more companies in US
PHOENIX — President Donald Trump and many Republicans were calling for the corporate rate to be cut from 35 percent to 20 percent in the overhaul of the country’s tax code.
Valley economist Elliott Pollack with Elliott D. Pollack and Company said the Republican plan would essentially change the incentives and more companies could be moving operations back to the United States.
“That would make the U.S. more competitive with countries overseas. Right now we have the highest corporate tax rate in the industrialized world, Pollack said.
“The fact is that it forces some companies to go elsewhere. The world average is 22-23 percent.”
The tax plan was announced Wednesday.
Jim Rounds with Rounds Consulting said 20 percent was the right number for the corporate tax rate.
“It will cause additional investment and economic activity and it will lift the economic expansion now and in the future,” he said.
“We’ll have a better holiday shopping season on top of what was already going to be a big season. If they had cut it to 5 percent it would have had a huge impact on our debt and ability to put in infrastructure. They settled on a percentage that was appropriate.”
U.S. Rep. David Schweikert (R-Ariz.) told KTAR News 92.3 FM’s Reality Check with Darin Damme that tax cuts for corporations were crucial for the U.S. economy.
“We have a crisis right now: We have some of the highest corporate income taxes in the world and so our companies — particularly our big companies — are saying, ‘We’re out of here.'”
Schweikert said companies that are free to spend more money will invest more in American workers and raise pay rates as competition rises.
U.S. Sen. John McCain (R-Ariz.) said in a partial statement Wednesday, “I have long supported efforts to fix our antiquated and burdensome tax code, and look forward to reviewing the framework released today to make sure it is good for Arizona and good for America.”
U.S. Rep. Andy Biggs (R-Ariz.) also had positive views of the planned overhaul.
“This is good news for families, businesses, and our economy as a whole. We are moving in the right direction, and I am optimistic that we will have actual legislation to debate and vote on as soon as possible,” he said in a partial statement released Wednesday.
U.S. Rep. Tom O’Halleran (D-Ariz.) said he wanted tax reform that brought real relief to middle-class families.
“And then incentives to encourage our businesses to keep good paying jobs in our community and country. Not just giving them free reign to get a tax break and ship jobs overseas.”