‘America First’ . That was Donald Trump’s slogan in the electoral campaign and is the mantra of the economic and fiscal policy of the United States . The fiscal reform recently promoted by the US government attests to it.
Among the great changes in Donald Trump’s fiscal reform is the fact of reduce tax rates s to companies and apply a tax to imported products.
Donald Trump’s tax reform has the support of large companies and large financial entities, main beneficiaries of US reform.
For their part, the five most important economies of the European Union have shown the rejection of the tax reform proposed by Donald Trump. In this way, Germany, the United Kingdom, France, Italy and Spain have denounced in writing the US reform.
1. Fiscal Reform: Tax Cut & AMP; Job Act
The tax and employment law ( Tax Cut and Job Act) has meant one of the biggest changes in the United States tax system in the last thirty years.The main rejection of Europe is in the tax decrease to US companies . These will be taxed at the type of 21% already in 2018 , with respect to 35% with which they did it before. This measure, already in force, has been the largest decrease in the United States in recent years and compromises foreign companies operating in the United States.
In addition to reducing the income tax rate (ISR) for natural and moral persons, the Trump government will apply a tax to imported products. In this case, the application of the border adjustment tax . This tax will be 20% to imports.
2. The United States will stop entering 1.5 billion annual
The country’s public debt already exceeds twenty billion dollars. Waiting to see how Trump’s tax reform will affect, the United States is expected to stop entering 1.5 billion annual due to this cuts policy.From the Democratic Party it is estimated that this reduction will have direct effects in the “most vulnerable” population sectors. This was stated, among others, Bill Peduto, mayor of Pittsburgh (Pennsylvania).
3. Spanish companies in the US market
The United States is one of the main markets of Spanish companies, together with the United Kingdom and Brazil. According to data from the National Statistics Institute (INE), in the United States they operate around 700 subsidiaries of Spanish companies . These employ almost 75,000 people.
As this 2018 progresses, we will see the consequences of Donald Trump’s tax reform for Spanish companies. In addition, to verify the incidence of these measures in the global economy.
Are you operating with US companies? For any consultation about some of these modifications or about any other fiscal issue, our technical team is available to firstname.lastname@example.org.