A group of 137 economists have written an open letter to Congress declaring their support for the GOP tax reform bill.
In what is seen as a major boost to the Trump administration's efforts to get the major tax revamping legislation passed, the economic experts said their shared perspective is that the country's economic growth will accelerate if the Tax Cuts and Jobs Act passes, leading to more jobs, higher wages, and a better standard of living for the American people.
In the letter addressed to Senators and Representatives, they said the enactment of a comprehensive overhaul - complete with a lower corporate tax rate - "will ignite our economy with levels of growth not seen in generations."
They pointed out that in the race for job-creating investment, America is not economically competitive because for the last 31 years, its corporate tax rate has been the highest in the industrialized world and 15 percentage points above the OECD average.
"As a result of forfeiting our competitive edge, we forfeited 4,700 companies from 2004 to 2016 to cheaper shores abroad. As a result of sitting idly by while the rest of the world took steps to lower their corporate rates, we lowered our own workers' wages by thousands of dollars a year".
As per the Council of Economic Advisers, a 20 percent statutory tax rate on a permanent basis would help produce a GDP boost by between 3 and 5 percent.
The economists urged Congressmen to consider that $1 trillion in new revenue for the federal government can be generated by four- tenths of a percentage in GDP growth. They warned that if the bill fails, the United States risks continued economic under performance.
The signatories of the letter include James C. Miller, former OMB Director; Douglas Holtz-Eakin, American Action Forum; Retired Chief US Economist David H. Resler; Donald Koch and Robert Heller, former Federal Reserve Governor.
Thursday, Senate Republicans cleared a key procedural hurdle on their path to passing a major tax reform bill, voting in favor of a motion to begin formal debate on the legislation.
President Donald Trump urged Senators to follow in the footsteps of their colleagues in the House, who passed their tax reform bill last month.
Democrats have been harshly critical of the GOP tax reform plan, which they claim benefits corporations and wealthy Americans at the expense of the middle class.
Senate Finance Committee Ranking Member Ron Wyden, D-Ore said it is a plan to force working people and middle class families to pay for handouts to corporations and tax cheats.
by RTT Staff Writer
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