BOB NARDELLI TALKS TAX CUTS WITH NEIL CAVUTO
This is a good interview with Bob Nardelli by Neil Cavuto of Fox News. Bob is an ex high level CEO with company’s like Chrysler and Home Depot . When asked what would be best for the economy and job growth Nardelli says that we need more than just lower corporate taxes.
He was very firm and passionate about lowering the personal tax rates as well. If we only lower the Corporate tax rates then there are many small business people who will not get a tax break while bigger companies do.
LOWERING PERSONAL TAX RATES
Nardelli’s vision of getting the economy to pick up is to lower the Personal Tax rates so that Small Businesses can take more risk and make more investments. Personal tax rates in the United States according to the IRS range from 10% for people who make 0- $9275 to 39%.6 for those who make over $415,050 . If I am reading the graph correctly .
POLITICS AND TAX REFORM
Congress had a huge fight over these personal tax rates with the then New Republican Congress and President Obama. Obama did not want to lower the tax rates while the GOP did. No tax reform was possible with both sides so far away and so strongly ideologically different.
MY ASSUMPTIONS BASED ON HIS COMMENTS
By listening to the the comments of Nardelli it sounds like he thinks that lowering taxes both the corporate rate for big business and the personal rates for small business will generate more on hand capital for small business to invest.
This small business investment includes buying new and better equipment, replacing old equipment, expanding business operations, clearing off company debt and of course hiring new works.
The cornerstones of healthy and vibrant businesses.
POLITICAL DYSFUNCTION STOPPING PROGRESS
Bob Nardelli and Cavuto also touched on how Donald Trump is used to being like Nardelli. In the board room saying hey this is what we are going to do. A sensible consensus is formed among people with the same goals and they make a decision that helps the whole.
But not in Congress. There are so many different factions and agendas. President Trump has a different reality than does CEO Trump. As I said he might would in my post in 2015 ‘ Can you explain the Trump Phenomenon ‘
We will be watching to see how this falls out. What do you think?
Will we get tax cuts this year or soon? Do we need tax cuts?