After months of deriding the corporate rate cuts of the Tax Cuts and Jobs Act (TCJA) as a corporate giveaway, Democrats have a new tax reform proposal that represents a complete reversal of course from their previous position. Far from the “armageddon” or “bankruptcy” that Democrats said a corporate tax cut would represent, their own proposal acknowledges what everyone now agrees on: Cutting the corporate rate is necessary for the American economy.
The plan by Senate Democrats acknowledges that our corporate tax rate needed to drop at least 10 percentage points from its previous level of 35 percent. Supporters of the corporate tax cut argued that our corporate tax rate, far higher than that of other industrialized nations, was harming our international competitiveness.
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