President Trump‘s chief economic adviser Larry Kudlow has floated the possibility of slashing the corporate tax rate in half for American companies operating overseas if they shift their production back to the US.
“Maybe, this is a maybe, maybe the corporate tax of 21 percent should be lowered by 50 percent to about 10.5 percent for corporations that are coming back home,” he told FOX Business. “Maybe that’s something to look at.”
The Republican-led tax overhaul slashed the corporate tax rate to 21 percent from 35 percent in 2017. But reducing the rate further could help to create “incentive-oriented torque for the economy,” Kudlow said, as the coronavirus outbreak shutters businesses and forces Americans to stay at home.
“We’re not going to spend our way out of that,” he said, adding: “When we get round to it, in a few weeks perhaps, we will negotiate. I want to put as many growth incentives into this economy.”
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