US Tax Cuts Look Set To Stay
In the United States, tax reform continues to be as divisive politically after the fact as it was during the legislative progress. Indeed, a recent survey by the Pew Research Center suggests that those whose political sympathies lay closer to the Democrats than the Republicans still oppose the changes, even though a great many of them stand to benefit.
Complain as they might that the TCJA was skewed towards corporations and fiscally irresponsible, there’s very little that the Democrats can do at the moment to reverse things. Perhaps this year’s mid-term congressional elections may give them more influence over legislation and policy. But, would they really want to start picking off the bits of the TCJA they don’t like? Given that the tax cuts are encouraging some of America’s largest firms to relocate operations domestically, and that the IMF tacitly endorsed the tax reforms by predicting they would help boost global growth, that could be a very dangerous from an electoral point of view.
The US tax cuts aren’t having an impact only domestically; they have reverberated worldwide, with many authorities embarking now on soul-searching on tax policy, knowing that if they put a foot wrong there are some very attractive tax options on offer to investors in the United States.
For more information on this, and other topical international tax matters, please visit: https://www.cchgroup.com/roles/corporations/international-solutions/research/global-tax-weekly-a-closer-look