US President Trump’s tax reform bill has recently received global attention in the US Senate. Zhu Guangyao, deputy finance minister, said at the Phoenix Network Finance Summit on December 3 that the global economy is closely integrated, especially the tax policy adjustment of the most important and largest economies has undoubtedly had a major impact on its own economy. At the same time, its The spillover effect cannot be ignored. What is the impact of the US tax reform program on the positive aspects of US competitiveness, the increase in labor productivity in the United States, and the impact on the wages of American workers, which deserves our high attention.
Zhu Guangyao said that the US Senate passed the tax reform bill on December 2, when the US House of Representatives passed the House Reform Tax Reform Act. The key now is that the versions of the House and Senate will be merged. There are some differences between the Senate and the House of Representatives. The most obvious difference lies in the deadline for implementation. The term of the Senate is to implement the tax reform bill in 2019, while the House of Representatives is 2018. There is a one-year gap between the two. How to bridge the gap between the two sides is a precondition for the formation of a common version of the House and Senate and submitted to President Trump for approval.
"But in general, although this program still needs to continue the game, the big uncertainty has been eliminated. Once this plan is implemented, the US deficit will increase in the next 10 years, but the income from economic growth will not be calculated. The scale of tax cuts also reached the level of 1.4-1.5 trillion US dollars." Zhu Guangyao said.
In addition, he said that the US tax reform bill requires us to respond positively, and we must conduct policy discussions from the perspective of jointly improving labor productivity, competitiveness, and jointly benefiting workers and people. At the G20 Hangzhou Summit, countries reached an important policy consensus, which is to strengthen the coordination of international tax policies. Argentina will host the G20 summit next year, and everyone agrees to coordinate the international tax policy as an important topic of the G20.