What is the "backflow effect" of large-scale tax cuts in the United States?

Recently, the editorial said that the bills of the Senate and the House of Representatives will prevent enterprises from playing "tax games", prevent enterprises from avoiding taxes, prevent the reversal of corporate taxes, and stabilize the taxes of American multinational companies.

Second, the tax reduction bill may reverse the outflow of intellectual property rights in the United States for many years. The tax reduction bill has relatively favorable arrangements for intellectual property rights and a relatively perfect innovation environment. After the passage of the bill, many large American companies may be more inclined to apply for intellectual property rights in their own countries.

Third, when the tax reduction bill is combined with immigration reform, the United States may attract high-tech talents from its own country or even other countries to flow to the United States. Zhang Jun said that the Trump administration is currently launching a "points system" for immigrants, in which the educational level and scientific and technological quality score higher. Although the Trump administration's comprehensive immigration reform is difficult to advance, it is enough to promote the reform of individual policies.

Tax cuts are also expected to stimulate economic growth and bring back capital. Zhang Jun believes that tax reduction may stimulate economic growth, make a big economic cake and further increase the employment rate. The Wall Street Journal reported that "this will also improve the situation that the United States is less competitive in attracting global liquidity".

Some analysts pointed out that as the world's largest economy, the US tax reduction policy is bound to have spillover effects, which may set off a wave of tax reduction on a global scale. Nowadays, European countries such as Britain and France are also gradually promoting tax cuts.

Zhang Jun believes that the tax reduction bill may squeeze China's cost advantage in terms of means of production and manpower. The tax reduction bill may bring back American large enterprises and intellectual property rights, and it will also affect the flow of high-tech talents. Therefore, China needs to plan ahead and take the initiative, including talent introduction and legal protection.