Trump's proposed corporate tax plan will add trillions to US debt report
Donald Trump’s plans to reduce the corporate tax rate from 35% to 20% will result in a revenue loss of $3tn to $7tn for the federal government over a decade and are unlikely to create the promised boom in jobs, according to a new report from the non-partisan Committee for a Responsible Federal Budget.
Trump and Paul Ryan, Speaker of the House of Representatives, have been pushing hard for the plan with Ryan taking it to the road to places like Boeing’s headquarters to meet with workers at a town hall meetings, where Ryan has pledged to make the cuts by the end of the year.
But the Washington, DC-based thinktank found that the cuts were unnecessary as well as exorbitantly costly. The study looked at 92 publicly-traded corporations that reported consistent profitability between 2008 and 2015, and found that they already benefitted from low effective tax rates, paying less than 20% of that net income to the federal government in tax.
Ryan and Trump have argued that a lower tax burden will help create more jobs, but the study argues that these companies are already paying the lower level of taxes and have not created more jobs. In fact, while the total rate of job creation among the US private sector as a whole was 6%, these 92 companies saw a 1% decline in employment. They are creating jobs at a slower rate than the economy, in spite of having precisely this “Goldilocks” tax rate.
http://www.msn.com/en-us/news/politics/trumps-proposed-corporate-tax-plan-will-add-trillions-to-us-debt-%e2%80%93-report/ar-AAqXLA0?li=BBnb7Kz&ocid=edgsp
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Well, it works at what it is intended to do, which is to enrich the wealthy and impoverish the middle class.
