The corporate tax rate cut is going to crank up capital investment and get our economy growing much faster. The 35% corporate tax rate we have now is incredibly stupid and sets up an economic choke point right inside corporations where investment decisions are made. Our current high corporate tax rate drives business activity overseas and cuts investment here in America. The corporate tax cut should easily pay for itself through stronger economic growth, more jobs, and more tax revenue from a bigger economy and more people working.
It’s more uncertain whether a tax cut for individuals will pay for itself but it will increase economic growth, and eliminating the deduction for state income taxes will get rid of a big subsidy for excessive state spending on bureaucracies, lawyers, and consultants in states like CA and NY. That’s all good and it will make our economy more productive and efficient by eliminating subsidies for useless government activity. This tax reform bill will be a big win for the American people, Trump, and the GOP.
Well, I am not an expert on taxes, but from what I have read, with deductions, the effective corporate rate is about 18%. Which, according to what I have read, is actually pretty competitive. Since corporations will maintain their deductions, people in blue states will fill the tax void. Corporations are pretty much making a killing with this bill.
And as long as we are getting rid of “subsidies” why don’t we get rid of the one that makes higher earners pay a higher income tax rate? Seems to me, the person paying 35% in California is actually subsidizing the person getting an earned income tax credit in a red state.