Business coalition: Trump tax plan 'will spark an economic boom'
A coalition of businesses is praising President Trump's tax plan, arguing that it would boost the economy and stop companies from moving overseas.
Trump's plan, released last month, proposes lowering the corporate tax rate from 35 percent to 15 percent. The Reforming America’s Taxes Equitably (RATE) Coalition argued that the current corporate tax rate is not competitive and has given its members a disadvantage over its competitors from other countries.
"We believe that your proposal will spark an economic boom and make all American companies more competitive in the global marketplace," RATE said in a Monday letter to Trump. "We also believe that your proposal would stop the steady erosion of America's corporate tax base by removing the incentive for companies to flee in pursuit of a more favorable tax rate."
In the letter, RATE criticizes the current corporate tax rate.
"It has made it more difficult to invest in our American employees and operations, while limiting the value we're able to create for our shareholders," the group said.
The coalition's members include Ford, Boeing, Verizon and Walmart. According to the group's letter, its members currently have an average effective tax rate of 32 percent.
The coalition said that it wants to work with the White House and Congress on an overhaul of the tax code.
"The RATE Coalition applauds you for providing the presidential leadership that is critical to advancing tax reform," the group told Trump in its letter, which was signed by co-chairs Elaine Kamarck and Jim Pinkerton.