Though income tax cuts do not pay for themselves* and are proven to be an inefficient way of stimulating the economy,** business tax cuts are a different matter. To some extent business tax cuts may pay for themselves to a certain point, but there is no proof they will increase investment in corporate plant and equipment, result in more hires, or increase wages.
Currently would be a good test corporate tax cuts because companies are rolling in money. and are buying back stock which shows they don't know what to do with the money they have. Back in 2004, companies were given a tax holiday to repatriate foreign profits to the U/S. and employment actually dropped!*** Most of the money was wasted on buying back stock.. My guess is that the same thing will happen in today's economic climate.
What about small business? The definition of a small business is complicated.**** Many pay at the income tax rate. A tax cut for small businesses might well increase their investment in their companies and is worth a try. Of course only the largest small business would benefit from a maximum rate of 25%.
The GOP plan revealed on Thursday set the pass-through rate [i.e. small buiness and partnerships] at a maximum of 25 percent, but to deal with concerns it could be abused by individuals rather than truly benefit small businesses, the GOP bill includes prohibitions on what kinds of businesses qualify for this tax reduction. The tax reform bill also allows businesses to immediately write off the cost of new equipment, as well as business loan interest.****
* https://www.cnbc.com/2017/11/07/gop-tax-cuts-will-not-pay-for-themselves-add-to-us-debt-fitch-report.html
** http://stopcontinentaldrift.blogspot.com/2010/05/effectiveness-of-taxes.html
http://stopcontinentaldrift.blogspot.com/2016/09/tax-cuts-and-economic-stimulation.html
*** http://stopcontinentaldrift.blogspot.com/2017/11/corporate-taxes-cuts-unintended.html
**** https://www.webopedia.com/TERM/S/small_business.html
https://www.cnbc.com/2017/10/23/main-street-to-trump-tax-reforms-needed-to-keep-american-dream-alive.html
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