President Trump’s speech, which used overarching themes, outlined the four principles which would guide the reforms. First, a tax code that is easy and simple to understand. Second, a tax rate that would allow businesses to remain globally competitive. Third, tax relief for middle-class families. Fourth, tax breaks for corporate profits repatriated abroad.
During his speech, President Trump stated:
“We’re here today to launch our plans to bring back Main Street by reducing the crumbling burden on our companies and on our workers. The foundation of our job creation agenda is to fundamentally reform our tax code for the first time in more than 30 years.”
President Trump went on to note that tax reform would help small business and encourage economic growth at all levels. He commented that ninety-percent of taxpayers required help filing their taxes and that the current system only benefited those who could afford good tax lawyers and accountants.
President Trump also implored the US Congress, in particular, the Democrats, not to blow their chance at tax reform. President Trump said:
“This is our once in a generation opportunity to deliver real tax reform for everyday, hardworking Americans. This is our opportunity to deliver real tax reform for Americans. I am fully committed to working with Congress to get this job done.”
Speaking to Democrats, President Trump said:
“Put the partisan posturing behind us and come together as Americans, to create the 21st-century tax code that our people deserve. What could possibly be more bipartisan than helping people keep more of what they earn?”
Whilst it is believed tax reform will increase employment among Americans, Republican Senator from Kentucky, Rand Paul, has expressed concern about overhauling the tax code without first lowering revenue. In an op-ed for CNN, Paul stated:
“Tax reform can be simple, but I’m afraid those who are in charge will make it unnecessarily complicated.”
Despite this, there have been concerns over the effects of tax cuts on the Federal budget deficit and Federal debt levels. Furthermore, there is also concern that the White House may have a difficult time selling their tax reforms to the American people. Cliff Simms, the White House Director of Message Strategy, dismissed this, saying:
“I think that the media underestimates the economic understanding of the American worker out there — middle-class, rural, blue-collar folks in Michigan and Ohio and Pennsylvania and other states around the country who have watched the tax code, the tax system as it is today play a huge role in their factories closing and being shipped overseas. They totally understand competitiveness and totally understand how this is going to — in the President’s words — help us win again.”