1. Lower corporate taxes will make us more competitive with other countries. Our corporations will sell more creating jobs.
2. Lower corporate taxes will lower the cost of goods which is equivalent to giving people a raise.
3. Lower corporate taxes will help keep inflation in check even as the economy booms.
4. Lower corporate taxes will boost business investment, creating a larger tax base in the future.
5. Lower corporate taxes will reduce shifting of profits overseas.
6. Lower corporate taxes will decrease the tax avoidance that companies use thru legal loopholes
7. Lower corporate taxes will decrease time and money spent avoiding taxes.
8. Lower corporate taxes will help small companies compete with big companies that hire teams of lawyers to exploit loopholes to reduce their tax bill, small companies can't afford the lawyers needed.
9. Lower corporate taxes will increase employee wages.
10. Lower corporate taxes will increase stockholder dividends
11. Lower corporate taxes will increase foreign investment in the US
Am I positive all these will happen? There will be several that happen, some will take time to develop,
and many will add their small part to the economic competitiveness and economic growth we want.
Thanks for asking.
Numbering mine for clarity of discussion.
1. How much more room is there to grow? Employment rate is low. Economy is good.
2. I don't think the cost of goods will really come down. I think corporations are going to bank it or give to shareholders.
3. Again, I don't know how much better our economy can get, the ends not justifying the means. And that was with a 35% tax rate.
4. I don't know, but doubtful. How many more corporations will actually be created? Maybe more individuals will get into forming their own corporations? I'm not really sure how that would work, but if there's a will, there's a way.
5. Loopholes
6. We are closing some loopholes.... only to create others.
7. Stop avoiding taxes for whom? There will always be complaining about taxes. When we get to 20%, then that will be too high. Then the argument will be that we're not competitive enough with other countries, so we'd better lower it to 10%.
8. What's a small company vs. a large company? You're either a small business (< 200 employees, <25.5 mil in revenue) or you're not. I have a hard time feeling sorry for a business that makes that much money that is unable to hire a good tax accountant and lawyer. Like..boo hoo, we can't afford to hire staff to hide all of our profits?
9. Trickle down theory at its finest. I would be interested to see if the likes of Walmart and Amazon start to pay their employees a living wage with benefits. But not counting on it.
10. This is a point I can agree with. I see shareholders gaining more money.
11. Oh yeah. Wealthy foreign investors get a better deal than the US middle class.
To summarize: I don't quite follow the logic that if the tax rate is 35% and economy is good, then a tax rate of 20% will make it a lot better. This especially when knowing that companies right now NEVER pay a 35% corporate tax rate, most likely less than 20%, some pay nothing, and a few actually get a tax credit.
12. (this is mine) Lower corporate taxes will increase our national debt.