Question

In you’re own words, define the new tax plan?

Required:

One paragraph

Answer 1

Solution:-

US president Donald Trump announced new tax policy of his government in 2017 replacing 30 years old Tax system of the country. In the new tax policy, Trump has offered tax benefits to both individuals and corporates. It is believed that new tax regime will boost industrial growth, personal savings and market demand.

In the new tax system of the Trump administration, many incentives are offered to US entrepreneurs working outside of the country. The main objective of Trump administration with tax overhaul is to revive sluggish demand in the US economy and create new jobs for US citizens in the country. While US government has offered several tax sops to US companies who want to return home, it has also imposed heavy tax penalty on the domestic companies who are outsourcing works outside the country.

There has been divergent views in the United States on new tax system. Supporters argue that the new tax regime will boost investment and creates millions of jobs in the country. But many people view that imposing heavy tax penalties on companies outsourcing jobs to Asia and other regions will strain US trade relations with many foreign countries. Whatever may be the truth but the results are positive in the front of job creation. Many organizations now says they are in better position with the tax benefits offered under this policy and are hiring more people in different positions.

Though huge tax cuts will yield some fruitful results in front of private investment, people’s purchasing power and market demand, it will generate huge economic and social disparity among the people in the long run. Trump new Tax regime may also invite retailitory actions by European Union and many countries to impose heavy taxes on US goods and services.

Hope it helps you