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White House Says Corporate Tax Cut Would Boost Wages $4,000

  • Paper comes amid debate on tax framework’s middle-class perks
  • Projections based on assumption of higher demand for workers
Shoppers carry bags while walking through the Scottsdale Quarter shopping mall in Scottsdale, Arizona, U.S., on Tuesday, April 11, 2017. The U.S. Census Bureau is scheduled to release retail sales figures on April 14.
Photographer: Caitlin OHara/Bloomberg
Updated on

Cutting the corporate tax rate to 20 percent, 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, 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.