US presidential election
Bradley Tusk is a lobbyist for tech companies with experience in centrist technocratic politics. In the video below, recorded at the Web Summit in Lisbon, he talks with Alphaville about why so many people feel the system is rigged against them and why this feeling was expressed by voting for Donald Trump.
In the absence of concrete policy plans from the incoming Republican administration, and a sense of how those might play with the respective caucuses (caucusi?) in the House and Senate, the easy assumption is the Federal government will spend more on bridges and roads and/or cut taxes. But history suggests Trump can act in unpredictable ways.
Who would’ve thought that this election year could lead to corporate tax reform in the US? Goldman Sachs Group analysts say there could be some semblance of a bipartisan effort to rework the way multinational US companies are taxed during the next presidential term. They estimate there’s a 50-per-cent chance the corporate tax code will be reworked next year. (In short, the voters have spoken, and they want Big Business to pay.) The US taxes corporate income at the highest rate of any OECD country, at 39 per cent. And unlike any other G7 country, it taxes companies’ income earned abroad, though it gives credits for taxes paid to foreign governments. That would be onerous, if the taxes weren’t delayed until foreign income is brought back onshore. Perpetually. That gives companies a big incentive to keep their foreign income offshore, reinvest it in financial markets, and pay lower dividend and capital-gains tax rates instead. And, hey, look, they’ve responded! S&P 500 companies pay a median tax rate of 28 per cent, according to Goldman Sachs’s analysis: