Research On The Trump Tax Reform

In December,2017,the Senate and house of Representatives voted 51 votes and 49 votes for the final bill of tax reform of President Trump,and the new tax reform act was formally implemented in January 1,2018.This is the largest and most far-reaching tax reform in the United States since President Reagan.Tax reform mainly includes lowering the tax rate of corporate income tax,decreasing from 35% to 21%,simplifying the reduction of personal income tax,adjusting the alternative minimum,tax exemption and deduction,implementing the corporate tax system in the cross-border tax system,encouraging the US enterprises to move back and so on.Because of the huge reform and radical policy and the controversial political style of President Trump,the tax reform not only produced great controversy in the United States,but also caused great repercussions in the world.This paper first reviews the former president Obama during his tenure of the tax reform policy,policy content of the tax reform are summarized;and the main features of the Obama administration and the Trump administration's tax reform are compared;on this basis,the comprehensive economic situation in the United States,the reason and the influence of the Trump administration's tax reform.The influence of Trump administration's tax reform mainly includes: in the US,on the one hand,it reduces the burden on the US residents and enterprises,stimulates investment and employment,and reduces the tax inversion phenomenon;on the other hand,it will also lead to the widening gap between the rich and the poor and the expansion of the fiscal deficit.Internationally,it may trigger a global wave of tax cuts and have an impact on other countries.Therefore,China should pay close attention to the impact of Trump administration's tax reform on Chinese enterprises and take precautions.We should further deepen our tax system reform and improve our international competitiveness by lightening the tax burden of enterprises.