U.S. corporate taxes within the 20 percent range would be a plus for the economy, Morgan Stanley Chairman and CEO James Gorman told CNBC on Thursday.
Rates in the world’s largest economy are currently 35 percent, versus 15-25 percent in major jurisdictions elsewhere in the world, he explained. “For the U.S. to be so much off market, it’s going to lead to corporations doing things you would not normally do in terms of shifting revenues offshore, the kinds of inversions we saw a few years ago, etc.”
“Right now, anywhere in the 20s would be a very positive thing and stimulating for the economy.”
The House and Senate are currently working on separate tax overhaul plans in hopes of passing a bill for President Donald Trump to sign by year-end. Trump wants to give an immediate cut, arguing that it will spark job and economic growth. Earlier this month, Treasury Secretary Steven Mnuchin said the president would prefer a 2018 reduction, but seemed to open the door to a one-year delay.
“The administration knows that they if don’t get this tax plan done, 2017 was a wasted opportunity,” Gorman continued.