Gary Cohn, one of the key architects of President Trump’s historic 2017 tax reform, sent a wake-up call to Wall Street saying it would be okay to raise corporate taxes.
“I’m actually okay at 28%. You know, the level we got to in our tax plan on the corporate side was actually a bit lower,” than was originally thought necessary, Cohn told Yahoo Finance’s On the Move.
Cohn was director of the National Economic Council when he helped push the Tax Cuts and Jobs Act successfully through Congress. It cut personal income taxes and lowered the corporate tax rate to 21%, helping grease the wheels of a record expansion — until the coronavirus crisis brought the global economy crashing to a catastrophic halt.
“I’ll remind everyone though, that the corporate tax rate is not where we collect a lot of dollars. So there’s a difference between going from 35 to 21, it was less than $100 billion a year,” Cohn said, adding that the tax on corporate income fails to generate a lot of money for the Federal Government.