President Donald Trump has written an op-ed for Labor Day in which he laments America’s “crushing tax burden.”
“Our self-destructive tax code costs Americans millions of jobs, trillions of dollars and billions of hours spent on compliance and paperwork,” wrote Trump in the Journal Sentinel. “To fix this, we have made the foundation of our job creation agenda fundamentally reforming our tax code for the first time in more than 30 years. I want to work with Congress on a plan that is pro-growth, pro-jobs, pro-worker and pro-American.”
Trump goes on to note that his tax plan will “dramatically reduce” income taxes for American workers and families, aiming to simplify the tax code to put more money back into the average American’s pocket. The ultimate goal, it seems, is to “bring back American jobs by making our businesses competitive once again.”
According to Trump,
“In 1986, President Ronald Reagan led the effort to make America the most competitive nation in the world by cutting our business tax rate to 34%, well below the average rate of other developed nations at the time. It worked. Our economy boomed, the middle class thrived and median family income increased.
But our economic competitors did not sit still. They saw what we did and started lowering their business tax rates, too. Over the past 30 years, the average business tax rate among developed nations in the Organisation for Economic Co-operation and Development (OECD) fell from 45% to less than 24%.
Instead of remaining competitive over the same period, we actually raised our rate to 35%. When combined with state and local taxes, American businesses today are effectively taxed at 39%.
We have gone from a business tax rate that is lower than our economic competitors to one that is more than 60% higher.
The United States is now behind nations such as France, Germany, Canada, Ireland, Japan, Mexico and South Korea. We are dead last.”
Returning to protectionist rhetoric, Trump notes that foreign acquisition of American brands has led to fewer jobs before introducing his “American” economic model.
“Under this system, we will encourage companies to hire and grow in America, to raise wages for American workers and to help rebuild our American cities and communities,” Trump wrote, adding, “Americans will succeed and grow together — as one team, with one shared sense of purpose, and one glorious American destiny.”
“If we do this — if we unite in the name of common sense — then we will add millions of jobs, funnel hundreds of billions of dollars into our economy and give America the competitive advantage we so desperately need,” he said.
“We will unleash America’s full potential. And in doing so, we will truly make America great again.”