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Deputy National Economic Council Director Jason Furman on Obama’s plan to lower the corporate tax rate and how it will contribute to deficit reducti...
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-- back to the White House -- -- and then rich what's the administration's saying about the president's new tax one.
Outlook -- we're gonna figure that out right now Jason Furman White House economic advisor thank you very much for joining us this afternoon.
Our first off when you look at what the president writes in the proposal.
That it will contribute to deficit reduction.
When and why the change instead of revenue neutral.
And this is a plan that wouldn't add to the deficit.
And we have a problem which is we have a bunch of tax cuts for businesses that we do you every year.
Congress always says they're gonna pay for them but then they never end up paying for them by actually paying for those tax cuts this would contribute to deficit reduction with the goal of this plan.
Is to simplify the tax system to get rid of a lot of special tax breaks and to really cut that tax rates are getting more investment.
More jobs here in America and that's the whole motivation for this plan.
There are concerned that in net over net having businesses contribute more to deficit reduction.
And paying more in taxes does that mean that it's a good time to do it in this environment thirteen fourteen million people unemployed.
We've heard from a lot of businesses that they would give up a lot of special tax breaks in order to have a lower rate -- -- just give you one example.
You build a building to do manufacturing and you pay -- three times higher tax rate and somebody who built the same exact building.
For oil and gas things like that don't make sense and attacks -- they don't have a broader economic rationale.
They make it more complicated but we needed to level the playing field and -- -- tax rate which is what the president's framework were down.
You maintain -- territorial already international's tax system instead of a territorial tax system.
It's been a recommendation by the president's council business roundtable a number of different groups have called.
To shift us to a territorial system why not do that here.
What the president very concerned -- it is ending in.
-- incentives.
Locate production shift profits overseas and may be facing a tax on the value of some countries.
Which US corporate profits and some small island countries -- for 500%.
Of the entire gross domestic product.
Of those countries that's not because they're actually producing things there that's because they're shifting a lot of profits there.
The problem with that is it requires higher tax rates on all the companies doing business here in America so we -- do -- change that.
Take all this saving instrument international.
Minimum tax on foreign earnings reinvest the savings cutting the tax rate here in America.
Congressional research service among others have said if you get rid of the oil and gas deductions you will raise gas prices gas nationally 360 continues to go up.
Is that a concerned should we be.
Encouraging a policy that makes them pay more and makes us.
Him -- absolutely reject the assertion on the that would raise.
Gas prices gases -- -- on the world market.
It wouldn't affect them what it does effect is the profits of the oil and gas companies and those wouldn't be as good but you then end up having lower tax rates more job creation and a stronger economy nationwide.
Jason -- thanks so much for joining us Charles and Shibani.
Back to you in New York thanks so much -- -- and at the White House.
