tax policy says that s going to cost you $2.4 trillion. with a t. and the treasury secretary says you can pay for that through growth, through the growth that will come through it. that s die manic scoring. it s my kind of diet. the highest corporate tax rate of 30%. you can see how it stacks up there. the average for developed nations is about 23%. there is no question that our high tax rate could be holding back companying and it is also unnecessarily complicated with all kinds of loopholes. when you look at what big companies actually pay, they take advantage of all of those loopholes written by congress, all those loopholes and back doors and an effective tax rate of 15%. this is for monies that make money in the u.s.
and one in five of those big companies maid no federal taxes. so they have found legal ways to get around that high rate. so if you re going to cut taxes, you have to reform taxes so that you get rid of those hoop holes and back doors and it is much more fair and even playing field. just reducing it to 15% and getting rid of the afm, that s the 2$2.4 trillion. we have no idea full stop if they are going to include any reforms. if you had an office pool over what the first country the u.s. would engage in a trade war with, might have been china or mexico. i would have said china. but instead it is our friend, our ally, canada. for as long as i know the united states has been fighting with canada in the world trade organization and others over
companies they re going there. are moving and investing there. but the effective tax rate, the rate that companies who make money in the u.s. actually pay around 14%, because they use that super stupid, complicated tax code we have to find ways to lower their tax burden, and is that the official name of it? that s what i the super stupid. yeah, but one in five companies pay no tax. for years, poppy, you know covering business, that the most important job in a corporation is the tax office! of course, of course. this morning, somebody in business e-mailed me and said if you re paying 35% and you re in a big company, you re fired, because there are ways to get around it. the question is, are we going to simplify it for consumers, for everyday people? what s that going to like? who makes up the difference? because the tax policy center comes out and says if you want to do that, in a decade, it will be $2.4 trillion in the hole. definitely over ten years. so, wh
let s talk about this. political analyst is still here with me and betsy woodruff is joining us. cutting corporate taxes is something he promised and something he wants. but it does not seem completely in line where republicans are at the moment and have been for a long time on their dream of real kind of, like, once in a generation tax reform. long sustained fax reform. republicans would love to see corporate taxes cut as well and that is part of their proposal, but right now they have a trump wants to go from 35% down to 15% and to do that you would add $2.4 trillion to a debt that we already have at more than $19 trillion. put that all together and you have fiscal conservatives in congress who can t swallow that. what are you hearing? could this be a replay of how health care played out? your democrat, they re not going
are already paying less than the number the president is floating. if the administration leaves those in place and reduces the corporate tax rate revenue will plunge, that s the second issue. tax cuts are expensive. if companies pay less, individual taxpayers are on the hook to make up the difference. a tax policy center study last year which looked at that initial trump 15% tax proposal shows it would cost $2.4 trillion in lost revenue over the deck decade, $240 billion a year. that s about the same as the government spend on food stamps, jobless benefits and child nutrition. the big question on taxes how will the administration pay for it. it will have to be revenue neutral to be passed as part of the budget process. i want to bring back in ellis henican and political economist greg valiere. the 15% number, greg, floated