November 15, 2017
The Washington Post may have misled readers on the Trump administration’s claims about the impact of its proposed cut in the corporate income tax. It noted the claim that “that more than 70 percent of the corporate tax burden is passed on to U.S. workers.” In fact, it is assuming an amount of growth that would vastly exceed the size of the tax cut. If workers get their share of this growth, well over 100 percent of the tax cut would be passed on in higher wages.
That is how it gets the figure of a $4,000 average gain per household. That would come to approximately $560 billion a year, as compared to a tax cut that will average around $150 billion a year.
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