The Trump Administration released an outline today of its plan to reform the corporate tax code. In general, the plan offers huge tax cuts for corporations and high-earning individuals - its cornerstone reform is a corporate tax rate cut from 35% to 15% - with changes to deductions that are nowhere near enough to offset the cost.
Amanda Ballantyne, the National Director of Main Street Alliance, released the following statement:
“President Trump’s tax plan hurts small businesses on both sides - from their ability to compete to their customer base - and demonstrates Trump and his Administration are fundamentally uninterested in creating an economy that supports Main Street small businesses and their communities.
First, this plan does not close the loopholes that encourage corporations to send jobs and profits overseas. Those loopholes are top concern for small business owners, who simply can’t compete with America’s biggest and most profitable corporations that are already stashing money offshore to ensure they pay nothing or little in tax. Currently, small business owners and average taxpayers are stuck paying their tax tab of $135 billion a year.
The primary achievement of Trump’s plan is not to adjust for this inequality, but to shockingly cut the corporate tax rate by 60% for an additional tax revenue loss of $2.4 trillion over 10 years. Where do you think we’re going to get that money? Supply-side trickle-down economics simply doesn’t work - we saw that clearly from Presidents Raegan and George W. Bush’s tax cuts. Cutting tax on corporations doesn’t grow the economy. That $2.4 trillion is going to come out of the pockets of small businesses, their customers, and their communities, giving already profitable multinational corporations a huge windfall at the expense of the workers on Main Street.
Second, and directly related, small business owners will tell you time and again that they need customers more than anything else. That means they need a prosperous middle-class community with disposable income to spend at their business. Yet Trump’s tax plan, built around huge tax breaks for people like him, demonstrates that his last concern is the average American, the small businesses they patronize, or the essential public services both need. The Buffett Rule, which outlines that corporations shouldn’t pay a lower tax rate than small businesses and middle class families - is a good guiding principle for tax reform that actually works for Main Street.
Despite the majority opinion that the wealthy don’t pay their fair share, and despite claiming to be a champion for small businesses, President Trump clearly champions little but his own bottom line and that of his friends.”