By Jackson Richman
The 21 percent corporate tax rate under the Trump tax plan enacted last December is the “only good thing,” according to former Chairman of the Federal Reserve Alan Greenspan.
“The stock market is being driven, to a large extent, by the one thing that I think the Trump administration did right,” Greenspan said at the American Enterprise Institute on Wednesday. “Got the 35 percent marginal corporate tax rate and brought it down to 21 percent.”
Greenspan has been critical of the president’s tax reform. Last November, the former Fed chair remarked that because of the soaring national debt, the then-tax bill would have tax cuts too soon and only make fiscal matters worse.
“Economically, it’s a mistake to deal with sharp reductions in taxes now,” Greenspan told Fox Business. “We are premature on fiscal stimulus, whether it’s tax cuts or expenditure increases. We’ve got to get the debt stabilized before we can even think of those terms.”
The first major update to the tax code in just over three decades, the tax plan includes a permanent 21 percent corporate tax rate, reduced income tax brackets that expire in 2026 due to budget reconciliation rules, a doubling of the standard deduction of both individuals and married couples, an elimination and cap of most deductions, a repeal of the Obamacare individual mandate, and more.