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US reform bill puts pressure on China to tweak its tax code to avert fund flight, lure investment

2017-12-06 09:42:12       source:South China Morning Post

December 6, 2017

China’s tax authorities may have to reconsider whether they should accelerate their plans to simplify the country’s tax code and cut tariffs, as America’s biggest tax reform in three decades could set in motion a global race to slash taxes to attract capital.

US lawmakers are working this week to reconcile the tax-reform bills passed by the House of Representatives and the Senate, before sending the legislation to president Donald Trump to be signed into law.

The proposed bill would consolidate seven tiers of personal income taxes into three, slash the top corporate tax rate to 20 per cent from 35 per cent, and move the world’s largest economy toward a territorial tax system to encourage American companies to return their offshore profits and earnings home.

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