What does the Trump tax cut "big gift" affect China?
huanqiuwang· 2017-12-03 08:43:28
"three reflux" is also a problem that China must pay attention to. It may squeeze China's cost advantages in production data and manpower.
according to foreign media, the United States Senate passed the tax reform bill by 51 to 49 in December 1st, which will be the first time in 31 years for Congress to amend the tax law in 31 years. The bill will reduce enterprise income tax from 35% to 20%, allowing business owners to deduct 20% from their earnings." according to the American media reported earlier, Trump had hoped to bill the earliest in November 30th by a vote in the Senate, as its greatest achievement since the government and the ruling Republican party. The
overall tax reform act is a generous tax reduction for businesses and a moderate tax reduction for families and individuals. This will be the first time that Congress has changed the tax law for the first time in 31 years. The bill will reduce enterprise income tax from 35% to 20%, allowing business owners to deduct 20% from their earnings.
the bill will increase the standard offset of married couples from $12 thousand to $24 thousand. But the tax cuts for individuals will expire on 2026, and the company's tax cuts will become permanent.
, according to BBC, will be the largest tax relief act in the history of the United States.
data: Congress of the United States. China News Agency reporter Deng Min photo
, however, according to the latest estimates, the tax reform act of tax cuts may bring the US $1 trillion deficit, which has become the focus of all parties' deadlock. For this reason, Trump and many Republicans have said that these deficits will be filled by additional economic growth. But some other senators are considering increasing the tax revenue to ensure government revenue.
on Wednesday (29 days), Trump told the rally in Missouri, now the world looks to the United States Senate, the Senate this week's successful vote (by tax), will lead us to take one more step forward, a huge victory for the American people. "
" local time November 29th, Trump attended a rally in Missouri to address the tax reform.
"voted for tax cuts, which is the priority of the United States. This is what we want to do, and we want to put the United States in the first place again. "Trump told the crowd that the tax reform would be the biggest Christmas gift they had received this year.
"three reflux" will reduce the tax cutting tide.
, due to the US tax reform, will attract the "three reflux" of manufacturing, intellectual property and hi-tech talents, which is bound to have spillover effects. Chen Fengying, a researcher at the China Institute of modern international relations, believes that this may set off a round of tax cuts worldwide. Now, Britain and France and other European countries are progressively pushing forward the tax cuts, which will be the year of global tax reform in 2018. According to
's analysis, once the tax war is launched, the results of vicious competition against international tax, such as the action plan of tax base erosion and profit transfer, will be reduced when G20 is launched. In addition, some of the provisions of the tax reform case may have violated WTO rules and resurrect the 30 year long dispute between the United States and Europe. What impact will the
tax reform bring to China?
on the one hand, if the U.S. deficit deal with improper operation, the fiscal policy leeway is reduced, the United States is likely to use the dollar hegemony output inflation, the impact on the economy China. On the other hand, the "three reflux" is also a problem that China must pay attention to. It may squeeze China's cost advantages in production data and manpower.
Chen Fengying believes that China should take a positive attitude towards the United States tax reform, in the introduction of talent and legal protection and other aspects of the overall consideration, and strive for the initiative. "After the changes in the international environment, China should also promote the reform of the tax system and create a healthy and healthy investment environment. "
source: China news network, Xinhuanet