Following is a statement by Matthew Gardner, senior fellow at the Institute on Taxation and Economic Policy, regarding President Donald Trump’s address to Congress. During the speech, Trump said he will reduce the corporate tax rate and provide “massive” tax relief for the middle class.
“The president’s call for a lower corporate tax rate is based on a false premise. While he said that American companies pay the highest tax rate in the world, numerous studies by ITEP have shown that this is not the case. The reality is that numerous loopholes allow companies to pay well below the 35 percent statutory rate, with many companies paying nothing in taxes year after year. Rather than giving corporations a huge tax cut, we should close loopholes and ensure that corporations finally pay their fair share.
“We all should be wary of any tax policy proposal that is premised on failed trickle-down economic theories and relies on dynamic scoring sleights of hand to predict extraordinary economic growth.”