U.S. President Trump's tax reform bill has received global attention recently after the U.S. Senate passed the bill. Zhu Guangyao, Vice Minister of Finance, said at the Fenghuang Wang Financial Summit on December 3 that the adjustment of tax policies in the global economy, especially in the major and largest economies, will undoubtedly have a significant impact on his own economy. At the same time, his Spillover effects can not be ignored. What are the positive effects of the U.S. tax reform on the competitiveness of the United States after the adoption of the tax reform program? What is the increase in the labor productivity in the United States? What is the impact on the wages of U.S. workers? It really deserves our attention.
Zhu Guangyao said that the U.S. Senate passed the tax reform bill on December 2, after the U.S. House of Representatives passed the House version of the tax reform act. The crux of the matter now is the merger of the two houses. There are some differences between the versions of the Senate and the House of Representatives, with the notable difference being the deadline for the implementation of the tax reform bill in the Senate version of 2019, and the House of Representatives in 2018, with a one-year gap between the two. How the two sides of this disagreement are reconciled is a prerequisite for the formation of a common version of the House and Senate and for the approval of President Trump.
"But in general, the big uncertainties have been eliminated despite the need to continue the game through this program.Once this program is implemented, the U.S. deficit will increase in the next 10 years, but not the portion of revenue generated by economic growth , The scale of tax cuts also reached the level of 1.4-1.5 trillion US dollars. "Zhu Guangyao said.
In addition, he said, the U.S. tax reform bill requires us to actively respond to the issue by discussing the policy from the perspective of jointly improving labor productivity and competitiveness and jointly benefiting workers and people. At the G20 summit in Hangzhou, all countries reached an important consensus on policies in order to strengthen the coordination of international tax policies. Argentina will preside over the G20 next year and all agree that the coordination of international tax policies should also be taken as an important issue for the G20.