First Trust's Westbury: Trump still not keeping his promises on US tax reform

Views of tax raises 'overblown'

The chief economist of First Trust Global, one of the largest managers of active ETFs, believes the current set of US tax reforms could to be another example of the Trump administration not delivering the real change it promised a year ago.

On the corporate side, Brian Wesbury says the options are positive because they want to reduce corporation tax from its current 35%, the highest in developed countries, down to 20% and for this to remain the case for ten years until 2028. Some in Congress believe companies will not invest if they think corporation tax will rise after 2028, but Wesbury does not agree with this view. He says: "This view is overblown. I do not think Congress would risk raising the tax rate overnight when we get to this point. "The extra economic growth should generate additional revenue which means th...