Middle-class Americans' incomes would eventually rise more than $4,000 if corporate tax cuts were enacted, the Trump administration said in an analysis released on Monday. Fred Katayama reports.
Middle-class Americans would get extra $4,000 if corporate tax rates were cut, according to an analysis from the White House Council of Economic Advisers. The Council says lower corporate taxes would give companies incentive to invest in new machines. That, in turn, would require more skilled workers, who would then be paid higher wages. President Donald Trump has said he would like to see the corporate income tax reduced to 20 percent. But the non-partisan research organization, Tax Policy Center, says the overall benefits of lower corporate taxes tilt heavily toward those with higher incomes. Bankrate.com's senior economic analyst Mark Hamrick. (SOUNDBITE) MARK HAMRICK, SENIOR ECONOMIC ANALYST, BANKRATE (ENGLISH) SAYING: "I guess, the reasoning goes that, if corporations have more money, they will spend more of that money on their workers. The problem with that reasoning among others is that corporations are not hurting for corporate profits even as we speak, and yet we know that essentially, nearly a decade into this economic expansion AMerican workers have not benefited largely from those corporate profits." Republicans, who control the House and Senate along with the White House, say they want to pass their tax reforms by the end of the year.