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GOP places risky bet on trickle-down tax cut

Republicans are on the cusp of passing the biggest corporate tax cut in American history, betting it will ignite an economic boom that creates better jobs and fatter paychecks for middle-class Americans.

That boom may never trickle down.

Some economists and corporate executives are already warning that simply lowering tax bills won’t necessarily cause companies to hire more people and pay them better. Instead, they could just wind up returning the extra cash to shareholders.

David Mendels, former chief executive officer of software firm Brightcove, said of the GOP banking on a lower corporate rate to generate bigger worker paychecks. “It really doesn’t work that way. No CEO sits there and says, ‘When my tax rate goes down, I’m going to hire more people and pay them more.’”

Excerpts taken from HERE.

...the Senate Budget Committee passed the tax reform bill on a party-line vote, setting it up for a vote by the full Senate, as early as Thursday. That bill probably won’t create many new jobs and will likely entrench dynastic wealth in America for generations to come, while ultimately not helping middle-class taxpayers much. But it’s great for the profits of publicly held corporations and their shareholders, so investors are celebrating.

Excerpt taken from HERE.