Former President Trump is considering a plan to cut the corporate tax rate further next year, a move that could boost economic growth, jobs and worker wages while increasing the government’s already historically large budget deficit.
That’s according to a Wednesday analysis by the Tax Foundation, which estimated that the move would make the U.S. corporate tax rate one of the lowest in the wealthy world.
“A lower corporate income tax rate would make the US a more attractive location for business investment, creating economic opportunities for American households and reducing incentives for businesses to move operations or profits overseas,” wrote economists Garret Watson and Erica York in their analysis.
The move would have a ten-year cost of up to $673 billion in revenue, however, during a period ”when debt and deficits are already unsustainably high, potentially squeezing out more pro-growth tax changes” that could be included as part of negotiations over whether to extend Trump’s 2017 tax reform law, they said.