Bloomberg
As economists ponder how much additional growth is in store for the US economy following the implementation of President Donald Trump’s wide-reaching tax reform, the European Central Bank says the consequences
for its own jurisdiction “are highly uncertain and complex.â€
The tax burden on US corporate income will fall significantly to a level close to that in a number of euro-area economies, the Frankfurt-based institution said in a report. That could overhaul the way companies choose to invest or shift profits.
“The reform risks intensifying tax competition worldwide, entailing a possible erosion of tax bases in EU countries,†the European Central Bank said.
Prior to the reform, the US corporate tax rate stood above the rates of all large euro-area countries, the ECB said.