“I would argue that the president and Congress should stick to their guns and if they get nothing other than a lowering of the corporate tax rate, I would argue a zero—that would be the best number—but any number below 20 is going to be better than where we are now,” Golub said.
But President Trump doesn’t seem to share Golub’s sentiment. Earlier this week, Trump said that tax reform will be aimed at the middle class and that the rich “will not be gaining at all.”
The president’s rhetoric is certainly closer to national opinion than Golub’s. To be sure, a lot of Americans see corporations as adversarial powers that should be forced to share their wealth. But an objective analysis shows that attitude to be motivating bad policy.
A zero corporate income tax would be a turbocharger for the national economy. Businesses from all over the world would want to have operations here. Existing businesses would find themselves with extra capital which would spur hiring and investment. And yes, all those new jobs would produce taxable income.
Golub is correct; if Republicans really want to better the lives of Americans and ensure a better tomorrow, they need to focus on economic growth. The best way to secure economic growth is by eliminating the corporate tax rate.