According to a White House study, lowering the corporate tax rate will increase the average household income by at least $4,000 dollars a year.
David French, senior vice president for government relations at the National Retail Federation, on Monday explained how President Donald Trump’s plan to lower the corporate tax from 35% to 20% will stimulate wage growth.
“Corporations are in business to grow and the best way to grow is to buy machinery and to employ more workers and to expand their business by investing in the business, and investment in the business will create more jobs and lead to higher wages,” he told FOX Business’ David Asman on “After the Bell.”
French also discussed how the much the American workforce will gain from Trump’s corporate tax proposal.
“We raise about $300 billion dollars a year in corporate tax revenue. If you cut the corporate tax rate down to 20%, that’s as much as $130 to $140 billion that can be shared by the American workforce. Workers bear the largest share of tax burden paid by corporations. So a corporate tax reform means more wages and more job creation for the American workforce,” he said.
During a press briefing at the Rose Garden, President Trump backed off his initial request for Congress to pass his tax reform agenda before years’ end.