According to an article in yesterday’s WSJ, China is worried that US tax reform could “…trigger a ‘tax war’ if countries start competing to offer the lowest rates.”
The article goes on to say:
“Chinese auto glassmaker Fuyao Glass Industry Group recently crystallized the concerns of some businesses and officials. In an interview late last year with China Business News, its chairman Cho Tak Wong cited excessive taxation as a reason for investing $1 billion to revive a former General Motors factory in Moraine, Ohio, rather than start a new plant in China. Mr. Cho and Fuyao didn’t respond to requests for comment.
“Officials in Beijing say Fuyao’s American gambit could be just the beginning if U.S. tax rates drop drastically. Mr. Liu, the tax-policy expert, said Beijing is serious about lowering taxes, but can’t act too quickly because changes take time—and because it needs the revenue.
“For China’s legions of smaller manufacturers, Mr. Cho’s blunt comments about excessive taxation were a welcome intervention. Smaller, private businesses provide most of the jobs, but struggle to get access to tax breaks and lower interest loans, which generally go to larger state-owned companies and tech firms.”
This is magnificent validation of not only the tax reform proposal itself, but also Trump’s pro business/jobs/Middle Class/economic growth domestic policy agenda. And I look forward to watching idiot political ideologues on both sides of the aisle – Never Trumpers on the Left, and balanced budget dopes on the Right – squeal and squirm as the Trump Democrats dare them to tell their constituents they voted against one of the most pro-economic growth tax reform bills in modern American history.