Cutting the corporate tax rate to 20 percent, as President Trump's plan proposes, is projected to create more than 587,000 full-time jobs, lift wages by more than 2.5 percent, and lift GDP by 3 percent, according to a report from the Tax Foundation.
The study found that reducing the corporate tax rate to this level would help Americans at every income level see their after-tax incomes increase by an average of $1,800.
"The most important thing that Congress and the Trump administration can do to boost economic growth, lift workers' wages, create jobs, and make the U.S. economy more competitive globally, is reform the business-half of our tax system," the report states. "And one of the most critical elements of that reform is cutting the corporate tax rate."
The foundation explains that cutting the corporate tax rate pushes down the cost of capital, which helps boost capital investment. The study also finds that economic effects would improve even more if full expensing were allowed with capital investments.
Source: Washington Free Beacon