President Trump’s former campaign tax advisers want him to abandon the push for comprehensive tax reform and instead focus on a quick reform that would lower the corporate tax rate.
The advisers, supply-side conservatives Stephen Moore, Larry Kudlow and Arthur Laffer, along with Steve Forbes, wrote in the New York Times that the business tax cut needs to be implemented quickly. “Republicans need to act with some degree of urgency,” they warned.
Trump should lower corporate tax rates even if it adds to the deficit, rather than figuring out how to lower rates for individuals and corporations while paying for it by cutting tax breaks, the advisers wrote.
“President Trump’s tax bill, like those of Presidents Ronald Reagan and John Kennedy, should be a tax cut, and it should be sold to the American people as such,” they said.
Democrats could be brought on board, they suggested, by allowing some of the revenues that would flow to the Treasury from businesses bringing back funds from overseas to be dedicated to infrastructure.
The op-ed’s authors, all long proponents of the idea that lower tax rates spark economic growth, helped Trump put together his campaign tax plan, which called for lowering the corporate tax rate to 15 percent.
The prospect of corporate tax reform has helped boost stock markets. The advisers cautioned that optimism could be hurt if Congress and the White House don’t act quickly on taxes.
Yet corporate tax reform alone also would be hard work for Congress. In 2015, President Obama and congressional Republicans and Democrats sought to find some compromise on reforming corporate taxes to lower rates and repatriate some of the trillions in earnings corporations have held overseas. The two sides couldn’t reach an agreement, however, in part because of the question of the treatment of small businesses and other businesses that file through the individual side of the tax code.
This post originally appeared on Washington Examiner