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Tag Archives: recession

Jerry Bowyer: On Tax Reform: Businesses Take “Wait and See” Approach

Jordan Peterson

Republican leaders are now out with their proposal for tax reform.

The good news is the plan is pro-growth. It really could get us out of the lurch, giving corporations a mechanism to bring almost 3 trillion dollars home from abroad, and to reinvest that money right here … in America.

The bad news—or the concerning news—is we’re running out of time.

The plan allows businesses to fully expense many equipment purchases. But until the tax passes, business are going to take a “wait and see” approach.

Why buy equipment now if you can wait till tax reform passes?—when you can then buy and deduct the expense right away?

If the tax reform takes too long to pass, the economy will slow, and the GOP could enter a mid-term election in the midst of a slow-down or even a recession—and they’ll pay a price.

No, this tax plan is not perfect, but it’s a vast improvement over what we have now.

Republicans and moderate Democrats ought to move quickly to pass it.

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Jerry Bowyer: Tax Reform and a Chance to Make up for Lost Decade

Jordan Peterson

Last week, Republican leaders announced their tax reform plans.

The good news is that they’re pro-growth: US corporate tax rates are today the highest in the developed world, and our current system perversely punishes American companies for bringing profits back from their foreign sales. The GOP plan fixes that problem. It also cuts taxes for what has been labeled “flow through” businesses —small and family-owned businesses often use that form. My own family business uses it. The reason it’s important to cut taxes these types of small businesses is because American jobs are almost all created the same way: by small businesses becoming big businesses.

It’s been a pretty bad decade for the U.S. economy: a terrible recession followed by barely a whiff of a recovery.

That lost decade has cost us standing abroad and frayed the social fabric at home. We can end that by embracing the growth model of JFK, Reagan and Gingrich/Clinton.

Americans can’t afford another lost decade.

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