SIMI VALLEY, Calif. (PRWEB) October 31, 2017
The U.S. corporate tax rate of 39.1% is the highest of any member nation in the Organisation for Economic Co-operation and Development (OECD), placing the most robust economic engine in the world a full 15 percentage points above the 24.1% average rate for those 35 OECD member countries—among them England, Germany, France, Belgium, Poland, Australia, the Scandinavian countries, and others. “Without question, the Trump administration’s push to simplify the U.S. tax code and ease the tax burden on American business owners will go a long way toward a return to 3% GDP growth and continue our economic recovery,” said Tom Streiff Special Consultant to HBW Partners.
Federal debt is not retired by the imposition of higher taxes. For our economy, continued high tax rates at this point in time would likely reduce available private sector revenue and contribute to a downward economic spiral during a period of shaky economic recovery. As Alan Greenspan (former chairman of the Federal Reserve under Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George W. Bush) famously said, “Whatever you tax, you get less of.”
Speaker of the House Paul Ryan, chief architect of the Trump tax reform plan, told MSNBC’s Hugh Hewitt on October 7th that the current tax code puts businesses at an enormous competitive disadvantage. “You get the business code fixed by lowering their rates,” Ryan said, “so they’re on par with the rest of the world or better. We will have much faster economic growth. We’ll have more jobs, higher wages. That’s the goal with tax reform.” He said that the push to get it done this year is “so Americans wake up in 2018 with a new tax system that is wired for growth, that gives middle-income people a real break on their taxes.”(2)
One of the first signs of stable recovery will be American businesses’ renewed willingness to contribute to individual retirement accounts for employees who want to save and invest. A Schwartz Center for Economic Policy Analysis study showed that between 1999 and 2011, the percentage of employers offering 401(k)s and the like dropped precipitously from 61% to 53%.(3) By 2017, those numbers had cratered. While most large companies offer 401(k)-style plans, only 14% of all U.S. employers overall offer a 401(k) or other defined-contribution plan to their employees.(4)
“The Trump administration’s tax reform proposals are of paramount importance to the American people. A bipartisan effort in the U.S. Congress to get these concerns worked out by the end of the year should benefit every American taxpayer,” Streiff added.
About HBW Partners
Established in 1991, HBW Partners is a multifaceted financial services organization offering the resources of a large company, while focusing on the personal touch of a small firm. HBW partners with honest, caring and motivated individuals who desire the independence to run their own businesses, while emphasizing long-term relationships that enable its advisors to provide many of the best possible outcomes for its clients.
HBW Partners empowers advisors with innovative products and optimal solutions to help its clients at every stage of life, whether it’s professionally managed money, packaged products, tax planning, insurance, annuities or trusts.
Through partnerships with many significant providers across all aspects of the industry, HBW has made available state-of-the-art technology, such as facial recognition tools, financial planning software, client acquisition programs and business planning tools to enhance the client experience, manage risk and increase productivity.
HBW Partners’ motto is “character and quality above all.” Autonomy, mastery and purpose with trust is the basis for everything HBW does. For more information, visit http://www.hbwpartners.com.
The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
(1) “Federal Debt Clock.” Government Debt in the United States—Debt Clock.
(2) “Speaker Paul Ryan On Vegas and the Gun Control Debate, and Tax Reform Plans « The Hugh Hewitt Show.” The Hugh Hewitt Show, 7 Oct. 2017.
(3) Shin, Laura. “The Retirement Crisis: Why 68% Of Americans Aren’t Saving In An Employer-Sponsored Plan.” Forbes, Forbes Magazine, 12 Oct. 2015.
(4) Steverman, Ben. “Two-Thirds of Americans Aren’t Putting Money in Their 401(k).”Bloomberg.com, Bloomberg, 21 Feb. 2017.