Trump Humiliates Obama: Tax Reform Effect Is Way Bigger Than Expected

It seems as if Trump is having a little bit of global impact with some of his policies. After the signing of the new Tax Bill, Australia’s treasurer said that if Australia doesn’t make a change in their own Tax Code, they could be facing problems.

According to The Guardian:

He has seized on Trump’s tax cuts, overhauling his justification for his proposed $65bn tax cuts to say they are now necessary not because they will add 1% Australia’s GDP growth, but because they will offset a damaging 1% hit to GDP that will supposedly flow from the huge tax cuts in the US without Australia responding.

He said Treasury analysis, which was handed to the government this week but not released publicly, has pointed out that Australia may experience a significant recessionary impact and a potential downgrade in revenues if it does not lower its corporate tax rate from 30% to 25% in coming years, in response to Trump’s cuts.

The Treasury analysis, which was given to Morrison’s office, was also given to the Australian, which wrote a story warning that Australia could be “marooned” with one of the highest company tax rates in the world.