One of the goals of the Tax Cuts Jobs Act is to close the g

One of the goals of the Tax Cuts & Jobs Act, is to close the gap between corporate tax rates in the U.S. and those abroad. What is the U.S. current corporate tax rate and what would it be reduced to? Is the new rate competitive and why?

Solution

Old tax rate is 35%

New tax rate proposed is 20%

It\'s competitive and it is lowered so to promote business environment in US. Businesses will now willingly prefer setting up their factories plants and business in US due to new lower proposed tax rate.