The “sigh” you hear from the progressive political establishment both in America and abroad is the realization that the president’s historic tax relief legislation will soon become the law of the land. Moreover, once the actual tax reform bill is passed average wage earning families will immediately see an increase in their paychecks come this February, with over 80% of Americans seeing a decrease in their taxes.
Furthermore, corporations across America will see their current tax rate of 35% drop to a flat rate of 21% which will immediately put America back on the global economic playing field, not only in America but also across the pond, which is no doubt giving countries like Germany indigestion.
Economists in Europe and especially in Germany have already sounded the alarm that the Trump economic doctrine will mean “significant amounts of new investment and jobs will shift from Europe to the United States,” that prediction is coming straight from one of Germany’s most respected business publications “Handelsblatt.”
The president’s strategic push to reduce America’s cooperate rate to 21% is also designed to compete competitively within the European market, in that Germany’s current estimated tax rate is 28.2%, and close to the European average of 20.9%.
Clemens Fuest, who heads the Ifo economic think tank, said he believed German business would suffer. “Investments and jobs will migrate to the US,” he said.
Gavin Ekins, a research economist at the Tax Foundation in Washington, argued that it is not only the tax rate that will make the US more attractive stating; “Now you get a windfall for having capital in the US, so that causes investors to invest. The change in the capital investment rules gives US firms a tremendous advantage.”
Ekins continues; “It’s a pro-capital formation tax bill and this is why other countries are so wary about what the investment landscape will look like.”
President Trump is an astute businessman who understands how the economy works, moreover through his leadership has transformed a stagnate and sluggish economy into a booming, economic powerhouse, unleashing American ingenuity, by cutting government regulations and allowing the free market to once again flourish.