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Michael R. Strain

Cut Corporate Taxes to Boost Growth (But Don't Exaggerate)

Fans and critics are both overstating their cases. What shouldn't get lost is the boon to workers.
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Like so many things in Washington, the debate over the effects of cutting the corporate tax rate has become too hot for its own good. President Donald Trump and his aides share some responsibility for this due to their exaggerated claims for its benefits. But their rhetorical excess shouldn't obscure the fact that cutting the corporate rate is worth doing.

Lowering corporate income taxes would increase the wages of workers. That's not just a political talking point; it's the consensus view of professional economists. To understand why, remember that only individuals can bear the burden of taxes. The corporate income tax is levied on corporations, but they are just organizing entities. Individuals carry its costs.