"This first piece of concrete information on Trump's tax plans is good news for both Europe and the world trade. The concerns that Donald Trump might use his reform to fiscally isolate the US import market remain yet unconfirmed. Most EU Member States have little difficulty withstanding the new competitive pressure resulting from the strongly reduced US tax rate, since up until now the USA has been a high-tax country in international comparison.
A 15 per cent corporate tax rate is by no means a particularly low rate from a European perspective. According to ZEW calculations, the US effective tax burden still exceeds that of 17 EU countries after the announced reform. Germany, however, would considerably lose attractiveness as a business location compared to the US due to its substantially higher tax burden as a result of the reform. The US budget deficit is set to rise even further now. It is delusional to think that tax shortfalls can be compensated through higher growth."
Please find below two detailed ZEW analyses on the US tax plans
For further information please contact:
Prof. Dr. Friedrich Heinemann, Phone +49 (0)621/1235-149, E-mail firstname.lastname@example.org