Multinationals were certainly pleased with the TCJA, giving the TCJA a business-friendly sheen — at least until the Congressional Budget Office issued a report in 2018 showing that the legislation would only reduce corporate tax avoidance by 23%. As a result, domestic companies are still competing against multinational companies that enjoy significant tax loopholes.
Put another way the 40 % drop in the U.S. Corporate tax rate from 35% to 21%, with the stated purpose to make U.S. Domestic Corporations competitive was 77% wasteful. If Multinationals were taxed fully by the TCJA, competitiveness could have been achieved by a reduction of 3.25% from 35% to 31.75%TCJA’s supporters claim that patience is needed — until the legislation demonstrates its full worth. But domestic companies continue to face a tilted playing field. They urgently need a more effective solution.