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The recently enacted tax reform/tax reduction is possibly the most misinterpreted and misrepresented policy change in the history of policy changes. For example, it has been accused of benefiting only the wealthy and of adding $1.5 trillion to the federal debt. There are numerous reasons to be highly skeptical of both these assertions.
The issue in the tax reform drawing the strongest criticism from Democrats is the reduction of the federal corporate tax rate. Democrats want you to believe that all the benefits of reduced corporate taxes flow to the wealthiest members of the population. Nancy Pelosi claims all the benefits go to “the wealthiest one-percent.” Knee-jerk reactions to reducing corporate taxes are a classic example of ignorance-based hysteria.
Taxes - Benefits - Wealthy - Oversimplification - Reality
To say that cutting corporate taxes benefits only the wealthy is a gross oversimplification of economic reality. A major part of the damage done by the corporate tax is the profound dishonesty it is based on. The corporate tax is a charlatan’s playground.
It’s unfortunate that the misbegotten term “trickle-down economics” was ever invented. It’s been one of the terms used to demean cutting corporate income taxes. In an advanced, complex, free-market economy money flows in many directions. It goes down, up, sideways, backwards, and forwards. Trickle-down is a concept that does much more to obfuscate than illuminate. No reputable economist considers it a useful term.
Opposition - Income - Taxes - Myth - Corporations
Much of the opposition to cutting corporate income taxes is based on the popular myth that corporations are capable of paying taxes. Corporations do write checks payable to the IRS but corporations cannot bear the “burden” of a tax any more than cows or horses can bear the burden of a tax.
If you work for a corporation you pay the tax by having a reduced wage or salary. If you purchase goods or services produced and sold by corporations...
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