It could work. The plan presented to Congress yesterday to cut the corporate tax rate, would increase income and that would mean higher wages. Rice University public finance Professor John Diamond says it could be a good thing.
“Having the highest corporate tax rate in the world definitely puts U.S. companies at a disadvantage,” Diamond says. “So, lowering the tax rate, I would say, is something that definitely needs to happen.”
The problem is, rich stockholders would likely benefit the most. Left-leaning politicians would fight that. Also, cutting the corporate rate to nine percent would make some fairly deep spending cuts necessary on the federal level.
“They would be coming from 35, the highest corporate tax rate in the world, to nine percent,” he says. “I mean, that's a tremendous cut.”