Trump's economic council details corporate tax 'windfall for workers'
New York — Cutting the corporate tax rate to 20%, as President Donald Trump has proposed, would increase average household income by at least $4,000 a year, according to estimates in a White House study. The study by Trump’s Council of Economic Advisers (CEA), released on Monday, says that kind of wage growth would take several years to go into effect, but it could eventually reach $9,000 a year. Other economists have previously questioned how beneficial such cuts would be for middle-income families. The projection is based on the assumption that companies will be more inclined to invest in the US with lower taxes, increasing the demand for workers and driving up wages. But some economists suggest that corporate executives would be more inclined to use a tax windfall to increase shareholders’ dividends, or to invest in automation that could limit the need for more workers in some industries. Trump and congressional leaders last month proposed a framework for tax legislation that wou...
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