Would Corporate Tax Cut Benefits Ever Reach the Middle Class?

Would Corporate Tax Cut Benefits Ever Reach the Middle Class?

Would Corporate Tax Cut Benefits Ever Reach the Middle Class?

By now you’ve likely heard that President Trump wants to cut the nation’s corporate tax rate from its current 35 percent to 15 percent. Congress is on board with cutting the rate, but the agreement on this plan stops there. Not only has Congress proposed a rate of 20 percent instead of 15 percent, but tax experts, economic groups, and political pundits alike have all taken sides on the issue.

As you might expect, both sides have a strong case as to why this is a good or bad idea. On the one hand, those who agree with this kind of tax reform claim that when businesses and corporations are given a tax break they invest in their companies and in their employees, thus helping the middle class.

On the other hand, those who disagree with this approach claim that there is no evidence that shows this type of plan working. Detractors claim this will hurt middle America more because the business owners will keep the extra tax savings in their own pockets rather than paying their employees more.

Both sides have data, research, and studies to back up their claims. Some research shows that when corporate tax rates are higher middle class workers actually hurt more than the executives and owners. Thus, higher rates would only hurt employees more.

Of course, those on the other side have their own evidence and research to counter that argument. Thus, the only way to see the results of lower corporate tax rates would be to implement the plan and wait and see what happens.

 

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

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The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

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Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

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