The Democrats and Trump Disagree on the Tax Plan

The income of middle - class Americans would eventually rise more than 4,000 dollars if the rate of corporate tax cuts came into being. This is what the administration of Donald Trump said in a analysis on Monday to counter Democratic criticisms that its tax proposals will overwhelmingly benefit the rich. The president of the United States, Donald Trump has spoken about the Iran nuclear deal in the Diplomatic Room of the White House in Washington on the 13th of October 2017. The White House and the top Republicans in Congress have unveiled a wide framework for the reforms in tax laws but the lawmakers have yet to work out the details of a legislative proposal.

The president of the US has said that he would like to see the US corporate rate of income tax rate be reduced to 20 percent from the currently existing 35 percent rate of the tax. The White House Council of Economic Advisers performed an analysis and stated that a lower rate of corporate taxes would give companies the incentive to invest in new machines that would be requiring more skilled workers who would then be paid higher wages. Chuck Schumer who is a Senate Democratic leader accused the administration of Donald Trump of deliberately manipulating the numbers and facts in its analysis and has also mentioned that the companies are already sitting on a lot of cash.

Chuck Schumer said in a statement on Monday that as the president likes to point out at the stock market which is at record highs and companies are raking in unparalleled profits and yet the wages have remained relatively on the flatter side. He also said that this is the positive proof that the companies already have a cash windfall but they are not using it to increase the wages of the workers. The Tax Policy Centre which is a nonpartisan research organization clearly stated that the overall benefits of lower corporate taxes are tilted heavily toward those with higher incomes. It also said that that the taxpayers in the middle - income group would be receiving less than about 10 percent of the benefit of a cut in the corporate tax rate while the top 20 percent would be receiving the benefits by about a high 70 percent. The centre has also said that the top 1 percent would be able to receive about one third of the total benefits and the top 0.1 percent would be getting about one fifth of the total benefit.

January 16, 2022 - 04:06
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