Now that House Republicans have agreed on a budget resolution to finance their legislative priorities, debate begins on the specific tax cuts to include in the final "".

At the top of this list is fulfilling President 's oft-repeated call to reduce the corporate tax to 15%. This tax rate cut would make the U.S. significantly more competitive and jumpstart our economy still feeling the effects of four years of anti-growth policies.

According to an analysis by the Tax Foundation, a 15% corporate tax rate would significantly boost GDP, wages, and jobs.



*President Donald Trump arrives to speak on his policy to end taxes on tips in Las Vegas on Jan. 25, 2025.* (Mandel Ngan/AFP via Getty Images)

The Tax Cuts and Jobs Act, which took effect in 2018, reduced the corporate tax from 35% – one of the world's highest – to 21%, middle of the pack. In response, U.S. corporations increased their domestic investment by an average of 20%, according to an NBER study that analyzed 12,000 corporate tax returns.



The lower tax rate is a major reason why  have far outpaced other developed countries over the last several years.

A 15% tax rate would create a new wave of success. Shareholders, including the 61% of Americans who own stocks, and ordinary workers would be the biggest beneficiaries.



A 15% corporate tax rate cut would also help small businesses, 1.5 million of which are structured as corporations. Small companies that service corporations and their workers would also benefit from new opportunities and higher revenues.



Small unincorporated businesses were among the biggest beneficiaries of the TCJA. They received a 20% tax deduction, accelerated expensing, and lower tax rates, bringing new life to the nation's entrepreneurship climate.

Nearly 20 million small businesses benefit from the TCJA deduction every year. Unfortunately, the TCJA's small business provisions expire at the end of the year.



It is spending, not tax cuts, that is driving the deficit. Since 2017, federal spending has ballooned from $4 trillion annually to nearly $7 trillion due to reckless and inflationary spending. Fortunately, the  includes a targeted $2 trillion in spending cuts to get the deficit under control.

As lawmakers begin debating which tax cuts to include in their historic reconciliation bill that will determine the country's economic outlook over the next decade, everything should be on the table. But a 15% corporate tax rate and a broad, 25% small business deduction should be the centerpieces.





Alfredo Ortiz is CEO of Job Creators Network.
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