ECB Sees Risk of Tax Race to the Bottom Following U.S. Reform

As economists ponder how much additional growth is in store for the U.S. 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.”

The tax burden on U.S. 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 published Monday. That could overhaul the way companies choose to invest or shift profits.