The ideal tax rate on Americans is no more than 25 percent, Americans for Tax Reform founder and president Grover Norquist said in a new interview.
Norquist was on The Hill’s “Rising” and was asked about the state of the American tax system in the wake of the cuts signed into law by the Trump administration in December 2017.
“We’ve seen a lot of the benefits” of the tax reform, Norquist said.
He said the stock market had a strong 2017 because President Donald Trump had already promised to lower corporate tax rates, so when he was elected in November 2016 companies started to spend more. As for the stock market’s 2018 woes, Norquist pointed to “trade issues.”
“If you ask the American people, the vast majority think the government should take no more than 25 percent. And that’s been constant back 50 years,” Norquist said.
“I don’t think any one person should pay more than 25 percent of their income of what they produce in taxes.”
Regarding stock buybacks, a common practice at certain companies, Norquist argued that it is an indicator of a “healthy” company. “They are a sign that the company trust its own future,” he said.
The issue of tax returns has been in the news this week because of the ongoing government shutdown. With many IRS workers out on furlough until the shutdown is resolved, the IRS is not operating near capacity. But it confirmed this week that it will process 2018 tax returns and cut checks if the shutdown continues.