Mike Pence assures Trump’s tax reform will benefit Australia

US Vice-President Mike Pence assured that the proposed "massive" tax reduction by US President Donald Trump would benefit the economy of Australia. The POTUS tweeted on Sunday that "big tax reform" is on the way, with further details to be announced on April 26, which will be Thursday in the Down Under.

According to Pence, a stronger American economy is synonymous to a stronger economy for all of its trading partners, which include Australia. “Rest assured, our tax reform will make the strongest economy in the world stronger still, and it will benefit the American people, American workers, and it will benefit the economy of Australia,” the Financial Review has quoted him saying.

Pence reportedly met privately with chief executives of Lendlease, Westfield, Macquarie Group and Austral who hoped Trump’s move would push for the case of lowering Australia's 30 percent rate. He praised these companies for helping fuel the relationship between the US and Australia.

He also stressed a commitment to bilateral trade and described the US-Australia Free Trade Agreement a "case study in success.” Pence said the bottom line is that the economies of both countries are “inextricably intertwined in a win-win relationship” that provides jobs and opportunities.

In a 50-strong gathering of business leaders in Sydney, the US vice president stated that American companies are investing in Australia like never before, pointing that investment between the two nations has risen by 50 percent in the past three years. Over 1000 US businesses, he said, are currently operating in Australia. Pence specifically cited Chevron as the biggest single foreign investment ever in the country. He said they are also grateful that the US has become Australia’s leading destination for investment as it benefited more than 95,000 Americans who were employed in good-paying jobs.

American Chamber of Commerce chief executive Niels Marquardt believes that lowering the American tax rate would benefit Macquarie, Westfield and Lendlease, which have a huge presence in the US. He thinks that the direct benefit that Pence is talking about in his speech is that these companies will be taxed at a lower rate, Financial Review reports.

Nicholas Moore, CEO of Macquarie Group who participated in the session, recognised the importance of Pence’s visit to Australia. He said it underscores the ongoing strength of the alliance for the two countries as well as the importance of Australia to the Trump administration. Pence also had a meeting with Prime Minister Malcolm Turnbull.