How Trump's Corporate-Tax Plan Could Send American Jobs Overseas
The president maintains his proposal would limit offshoring. A major provision of it would do just the opposite.
President Trump and his Council of Economic Advisors argue that cutting the corporate tax rate would be a major boon to American workers, in that it would substantially boost their household income. This is, as many economists and journalists have pointed out, wrong.
But there is another issue with the Trump- and GOP-proposed corporate-tax plan that has not drawn as much attention. A major provision of the plan—the full details of which are slated to be revealed on Thursday—fails its most basic claim: that it would “prevent companies from shifting profits to tax havens” and limit “offshoring.” Instead, the way that provision is designed, it would actually U.S. companies to move their operations overseas and to shift profits to tax havens.
