Americans for Tax Reform President Grover Norquist said Tuesday that President-elect Trump's tax plan would help make America competitive again, and would lead to new levels of economic growth in the U.S. again that were never seen under President Obama.
"It is extremely powerful in terms of economic growth," he said on C-SPAN of Trump's plan.
Norquist said that like Ronald Reagan in the 1980s, Trump is focused on lowering the top corporate rate, which today is 35 percent plus about 5 percent at the state level, or a 40 percent rate. He said that's about twice as high as the levels that companies face in Europe.
But he said Trump wants to lower it to 15 percent, which would mean a 20 percent rate once state taxes are factored in.
"So taking that down to 15, then you have to add the 5, so you're really at 20, makes us competitive with most of the rest of the world in a way that we weren't before," he said.
Another key piece of Trump's plan is to let companies depreciate the cost of new capital immediately, instead of over three, five or 10 years.
"That tremendously reduces the cost of investment in job creation and productivity increases," he said.
Norquist said Trump's plan should help spur growth, which has hovered around 2 percent under Obama, which he said would be a key change that would allow the government to reduce its debt.
"The best way to pay down the debt is to have strong economic growth and stop spending so much money," he said. "On the growth part, Trump's plan is extremely helpful."