Corporate Tax Cuts Would Benefit Ordinary Americans
An E.U. Study in 2007 found, for example, that “a ten percentage point increase in the corporate tax rate of high-income countries reduces mean annual gross wages by seven percent.”
.. “workers in a fully unionized firm capture roughly 54 percent of the benefits of low tax rates,”
..A lower corporate rate leaves more after-tax profits for firms and workers to bargain over, which can raise wages directly. And lower rates increase a company’s after-tax return on investment, encouraging investment relative to consumption. This helps raise capital per worker and hence boosts productivity and wages over time.
.. Britain and Canada, in particular, have shown that it is possible to substantially cut rates without meaningfully reducing corporate revenues as a proportion of GDP.