Corporate tax reform is on the national agenda, with the House GOP hoping for a “border-adjusted" tax and President Trump threatening a "big border tax." The President wants US companies to stay put, and he vows to remember the “forgotten people,” or working class Americans. Some of those Americans are corporate shareholders. Are there ways to reform the US corporate tax system that benefit them? Maybe. We just need to remember who pays corporate taxes and how.
Republicans in the House are proposing sweeping corporate tax reform . Their proposals would effectively repeal the corporate income tax, currently levied at a 35 percent rate, and replace it with a new “destination-based cash-flow tax (DBCFT)” at a 20 percent rate for corporations and 25 percent for unincorporated businesses. The new tax would be border-adjustable – taxing imports and exempting exports.