Who Gains From the Tax Plan? Economists Face Off
This capital deepening — having more and better capital for each worker — reverses recent trends and raises productivity growth.
Better incentives — like lower tax rates, being able to write off investments, taxation only on
earnings in the United States — will encourage innovation, investment, hiring and pay raises.
Critics say the proposal would reward companies for tax-avoidance strategies without — based on past cases — an economic dividend.
Faster productivity growth will translate into more compensation — wages and benefits — for workers.
hands went up at a recent event when asked if they would use tax cuts to increase investment; few companies plan new investments in response.
There is simply no economic rationale for a windfall to shareholders based on their prior tax avoidance, and there is no economic evidence
that such windfalls promote United States investment or job creation.
