The Atlantic

How Trump's Corporate-Tax Plan Could Send American Jobs Overseas

The president maintains his proposal would limit offshoring. A major provision of it would do just the opposite.
Source: Bill Pugliano / Getty

President Trump and his Council of Economic Advisors argue that cutting the corporate tax rate would be a major boon to American workers, in that it would substantially boost their household income. This is, as many economists and journalists have pointed out, wrong.

But there is another issue with the Trump- and GOP-proposed corporate-tax plan that has not drawn as much attention. A major provision of the plan—the full details of which are slated to be revealed on Thursday—fails its most basic claim: that it would “prevent companies from shifting profits to tax havens” and limit “offshoring.” Instead, the way that provision is designed, it would actually U.S. companies to move their operations overseas and to shift profits to tax havens.

You're reading a preview, sign up to read more.

More from The Atlantic

The Atlantic3 min readTech
What Amazon Thinks You’re Worth
Shoppers were offered a $10 credit in exchange for handing over their browser data. It’s an investment that pays dividends for Amazon.
The Atlantic2 min readSociety
He Killed an Unarmed Man, Then Claimed Disability
City leaders in Mesa, Arizona, operate a municipality where the interests of police officers are valued more highly than ordinary citizens, including those the police have wronged. Two years ago, I wrote about Daniel Shaver, an unarmed 26-year-old
The Atlantic11 min read
The Friends Who Listen to BTS Together Stay Together
“Fans are often prone to saying, ‘This band saved my life.’ BTS made us realize we have to save ourselves.”