Appearing on Fox News Channel’s Sunday Morning Futures, president of Americans for Tax Reform Grover Norquist told Maria Bartiromo that Trump and the GOP congress will enact tax reform this year, which is “really going to spike economic growth.”
Norquist said: “I think it’s certainly going to be moving forward immediately – get the corporate rate down, the individual rates down, the doubling of the personal exemption will take place immediately.”
According to Norquist, the benefits of bringing the corporate rate down to 15% cannot be overstated:
“Taking the corporate rate from 35% to 15% should be understood not simply as a tax cut – which it is – but it’s also fundamental tax reform. Because if the corporate rate is not 35%, the highest in the world, but down to 15%, one of the lower rates in the world, then we don’t have a lot of our international trade problems. It is reform.”
Norquist continued, “As soon as you take the corporate rate down to 15%, you will see tremendous changes in investment. All of that lovely money overseas – the 2 to 3 trillion dollars – will flow back to the United States this year. It is really going to spike economic growth.”
Norquist believes that Republicans will be incentivized to act quickly on tax reform because it will be a deciding issue in the midterm elections. He said:
“If [the Republicans] want to maintain control of the House of Representatives in the 2018 elections, they need to be able to demonstrate not just progress on regulations and some of these other issues – which are very good – but dramatic, undeniable growth in jobs and GDP. And that will flow from taking the corporate rates down, the individual rates down, and allowing all that lovely money American-earned money overseas to be brought back to the United States.
President Trump, too, is committed to cutting taxes. According to Norquist, “The President has been very, very clear: tax rates are coming down for all businesses, all people. The President may sometimes go back and forth on some things; on this issue, he has been emphatic, repetitive, and clear.”
Watch the full video here.