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White House's Kudlow floats cutting U.S. corporate tax rate in half

Published 05/15/2020, 11:15 AM
Updated 05/15/2020, 11:50 AM
© Reuters. Larry Kudlow participates in coronavirus economic "relief update" virtual event at the White House in Washington

© Reuters. Larry Kudlow participates in coronavirus economic "relief update" virtual event at the White House in Washington

WASHINGTON (Reuters) - White House economic adviser Larry Kudlow on Friday floated the idea of cutting the corporate tax rate in half for U.S. companies who bring their operations back from other countries.

"Why not provide a 50% discount for the corporate tax rate if you're moving from outside the U.S. to the U.S.?" Kudlow told reporters at the White House, emphasizing that this was a thought, not a policy.

"So, the rate is 21%. Why not try for a couple of years or longer, a 10.5% rate, which would make us extremely competitive and hospitable to new investments here?"

With the coronavirus pandemic sapping retail sales, the labor market and industrial production, President Donald Trump's administration and lawmakers are eager to find ways to shore up the U.S. economy.

Republicans are rejecting Democrats' attempt to send more money to states and first responders, as well as additional cash payments to individuals and families, through a $3 trillion spending bill. Trump has said he would veto the legislation should it reach his desk.

Kudlow told Fox Business network in an interview that "we're not going to spend our way out of" a coronavirus-related downturn, contradicting Federal Reserve Chairman Jerome Powell's push this week for the government to spend more during the pandemic.

Trump's administration, currently talking informally with Democrats, wants to look at incentives such as a payroll tax cut instead, Kudlow said. Alongside slashing the corporate tax rate, the government could look into the possibility of suspending capital gains taxes on assets bought between now and the end of the year, he added.

The administration will probably begin negotiating further coronavirus relief in a few weeks, Kudlow said.

© Reuters. Larry Kudlow participates in coronavirus economic

Latest comments

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How about cutting the individual tax rates in half, as it will be the spending of the consumer that brings the economy back not corporations.
lol. that's the thing why I dislike Democrats. republican at least has the gut and will do flat out do what's good for their base. had it been a Democrats in the WH, they wouldn't reduce individual tax.
Yup the repos only do things to help themselves
Watch carefully the number of infections today and in the coming week. If this is the solution, beter bring taxes to zero. Fighting the symptom, not the problem.
this guy been brimming with ideas for a long time. most of them proved to be absolute garbage. so much for an "adviser"
crony capitalism at best.
Larry Cudlow should stick to his BA in historyespecially modern history like 1929. Why is a history major the President'sfinancial advisor anyway? Who is advising who?
A thought of cutting rates markets rally any type of a glimpse of a tentative agreement market rally such garbage
That's unfair for the American companies that never left
one more ploy for rich getting richer.
why not cut corporate tax rate for companies that pay taxes? nah we got do it for companies that haven't paid anything. how about cut off fed stimulus to companies that don't pay taxes. thats how you get them back.
Sure...now that there is less debt we can afford it.... 🤣
This is an opportunity to bring jobs back to America with a short term tax break. YEAH !
And expand the deficit even further? How Socialistic can you get! AOC has won, everyone!
this muhffua wants to bankrupt usa! arrest this sun of a beach!
LOL like this is going to do any good trickle-down is a scam....hoover made the great depression much worse with it we the consumers is what creates demand for jobs, expansion, and factories not giving the rich and corporations more money......that money ends up in tax havens
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