Left Menu
Development News Edition

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

Reuters | Washington DC | Updated: 15-05-2020 22:13 IST | Created: 15-05-2020 21:09 IST
White House's Kudlow floats cutting U.S. corporate tax rate in half
Representative Image Image Credit: Flickr

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.


TRENDING

OPINION / BLOG / INTERVIEW

Why COVID-19 is unstoppable in USA despite it being ranked at the top of GHS Index?

Several worst-hit countries such as Italy, France, Spain, the UK, Canada, and Russia have peaked COVID-19 cases in April. Almost all of them have gradually flattened the curve. However, the USA is setting new daily records of infections tha...

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

Videos

Latest News

Trump says he will pressure governors to open schools in the fall

U.S. President Donald Trump said on Tuesday he would pressure state governors to open schools in the fall, despite a steady increase in coronavirus cases across the country.Speaking at a White House event to discuss reopening of schools, Tr...

Trump paid proxy to take college entrance exam for him, niece's book says

President Donald Trump paid a proxy to take a standardized college entrance exam for him when he was a high school student, his niece writes in a tell-all book scheduled to be published next week. In the book, Too Much and Never Enough How ...

Turkey, Italy agree Libya needs political solution -Turkish defence ministry

Turkey and Italys defence ministers agreed at talks on Thursday on the need for a political solution to Libyas conflict, according to a readout by the Turkish defence ministry. We have gladly observed that we share common and similar views ...

FACTBOX-Key moments in Bolsonaro's handling of COVID-19 crisis

Brazilian President Jair Bolsonaro on Tuesday tested positive for COVID-19, the latest victim of a disease that has wreaked havoc in Brazil, the worlds No. 2 coronavirus hotspot after the United States. Below is a chronology of the key mome...

Give Feedback