While Republicans have coalesced around Donald Trump as their nominee, there is still a divide within the party over what to do with the federal corporate tax rate if they recapture control of Washington next year. Some members of his party would like to see it reduced to as low as 15 per cent; others would want it as high as 25 per cent. Trump himself seems to have taken a middle road on his position, offering to cut the rate to 20 per cent in a recent meeting with CEOs.
Intraparty Argument Gains Momentum
This intraparty argument has picked up steam recently while GOP chances for a big—if not dominant—performance this November seem to grow, following poor debate performance on the part of Joe Biden. The party convention later this month is likely to push the tax issue front and centre for many party leaders and donors. It boils down to a question of lower corporate tax rates at the expense of all other considerations.
Although a final decision on this issue may be more than a year away, both factions have begun drawing lines in the sand. “Ultimately you want the rate as low as possible,” said the Heritage Foundation’s Richard Stern in a recent interview, arguing that the economic benefits of a cut outweigh the potential effects on America’s exploding debt. The question the party is pondering stands: can it convey the matter of corporate tax rates to voters and sell it?
“What you’re looking at is people who are concerned with how popular cutting corporate taxes are going to be.”
