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Old 10-19-2017, 11:01 AM
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Default Re: I have a question about Trump's tax reform plan

Quote:
Originally Posted by Lumara View Post
I receive daily emails about the latest news coming from the White House, and this one paragraph made me question it:



I know the US corporate tax rate is too high, but don't understand how lowering it (which I believe should be done) will increase wages and salary by so much. Would this be because Trump assumes that the savings would be passed on to workers (which I don't believe will happen), or is there some other rationale, like maybe returning more manufacturing jobs here will somehow result in higher wages? Does anyone know? (I'm looking for intelligent answers from anyone who has any idea about this, not juvenile, snarky one-liners from those who seem incapable of anything else.)

I'd like to see individual income tax rates lowered, not just corporate ones. That would surely result in more disposable income for those who work to earn it.
My guess is that the $4000 to $9000 figure is nothing more than a SWAG, politicians love those. As to why wages would rise: Some companies would translate that tax savings into pay raises for the workers, not all by any means, but some and the companies that do that will find they have the best qualified people wanting to work for them. Also, your increased jobs will result in increased wages theory holds water. It would certainly vary by sector, but basic supply and demand says when there is more jobs, wages go up to attract the best people.
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