White House: Cohn-Led Tax Plan Is Real and It’s PhenomenalIssue 02-13-17 |
Gary Cohn, former president of Goldman Sachs, is now head of the National Economic Council, the office within the executive branch that recommends economic policy to the President. One of its first orders of business is to establish a tax revision. There are tax revisions considered by Republicans in Congress, as well. The leading components considered by both government branches’ plans include lower tax rates for corporations and individuals, taxes on imports, and taxes on corporations’ overseas profits.
The various plans have merits as well as disadvantages. Depending on the business, U.S. corporations are lining up in favor of the import tax (major exporters) or against that tax (retailers and oil refiners). The taxes on imports are likely to have an impact on retailers’ costs, which would either pass along the higher costs to consumers or see their profits reduced. Since exports are not being taxed, manufacturers that export their products would be at a greater competitive advantage. One group that is currently being excluded with any proposed changes to taxes is wealthy individuals. Lower income households should benefit, as should taxpayers overall, since individual income tax rates are to be lowered from 39.6 percent to 33 percent.