US: Republican party drops their ‘border tax’ proposal
The Republican Party in the US seems to have now abandoned its impending ‘border tax’ which was targeted at US businesses which subcontract the manufacturing overseas and then, import the products for domestic sale. This is due to the implementation of ‘border tax’ being denied in the House of Representatives.
Moreover, the new proposal for a territorial tax system and the reduction of corporation tax to 15% are another two Republican projects which are undetermined. This is due to the fact that both proposals were dependent on the predicted border tax in order to counteract their negative impacts on tax revenue.
According to the Los Angeles Times, a joint statement referring to tax-reform conventions was released on Thursday the 27th of July. The new statement however resulted in more questions as to what the tax plan would consist of, including the size of the cuts the party will be looking for and as to whether the proposal would try to tackle the increasing federal deficit.
By dropping the ‘border tax’ idea, the Trump administration aims to portray a united front towards a wider improvement on tax.
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