Trumps Attempts To Join The Dots on Fiscal Reform.
A tough road
I know there are times when Trump must look at the UK's Chancellor of the Exchequer and wish he had his powers. For those non-UK readers, the Chancellor of the Exchequer holds the UK budget purse strings. The Chancellor keeps his plans in a little red suitcase that he shows at Budget time, and at this time he reads out all his budgetary plans to all at the House of Commons.
America on the other hand has the founding fathers. The legislative branches have advantages so that no one man in power controls all. This was outlined in The Federalist Papers - some of which I've posted here in the past.
Tax codes
All of this appears to be slowing the overhaul of the US tax code system which is requiring a Chancellor of the Exchequer of its own to overhaul it. America currently has to deal with:
The highest corporate tax rate in the industrialized world at 35%.
The highest level of corporate tax is producing just a trickle of revenue at 10% of the total take.
All of this all puts America at a corporate competitive disadvantage when it comes to globalisation, as large corporations look to move businesses elsewhere to make higher revenues outside the US. Many of these corporations reside in Ireland or Luxembourg.
After Brexit this may include the UK as well as Theresa May looks to lower the corporate tax rate to just 17% to stop the City of London firms fleeing to Zurich or Warsaw. She has promised this rate will be delivered after Brexit in 2020.
Trump has hard road ahead of him. The last President to pull off a fiscal stunt like this was Ronald Reagan over 30 years ago. Perhaps the low hanging fruit of reform would be a better policy for Trump.
We live in these "Never Trump" times, so we'll soon see if these reforms are truly beyond the grasp of this new political class of Trump-ites. The British Chancellor must look on at Trump and not envy his job in the slightest. "Good luck mate" as we would say in the UK.
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