We Could Send $1,000 a Year to Every Worker in America for the Cost of Trumps Corporate Tax Cut
We Could Send $1,000 a Year to Every Worker in America for the Cost of Trump’s Corporate Tax Cut
By Jordan Weissmann OCT. 16, 2017, 5:50 PM
The Trump administration says its plan for sweeping business-tax cuts is really designed to help workers. To bolster those claims, the White House’s Council of Economic Advisers released a short analysis Monday suggesting that the president’s proposal to lower the top corporate rate from 35 percent to 20 percent would raise the average household income anywhere from $4,000 to $9,000 a year.
The argument, in brief, is that letting Walmart and General Motors keep more of their profits will lead them to invest more in the U.S., leading to more and better-paying jobs for workers.
There are lots of reasons to doubt these sunny forecasts, from the fact that they rely on studies that have been pretty harshly criticized in the past to the fact that corporate profits have been extremely high for years now, interest rates have been extremely low, and yet we’ve seen neither a boom in worker pay nor corporate investment. However, the document got me thinking: What if, instead of relying on the magic of corporate cuts trickling down, Trump just spent the same amount of money cutting every family a yearly check? How much could we all get?
https://slate.com/business/2017/10/we-could-send-usd1-000-a-year-to-every-worker-in-america-for-the-cost-of-trumps-corporate-tax-cut.html