Trump’s proposed tax plan will benefit rich business owners and squeeze the middle class even further, argues John Wasik of Forbes. While the tax plan would cut corporate tax, without any incentive to raise workers’ salaries businesses will keep any additionally generated profits to themselves, theorizes Wasik. In his opinion, this is an attempt at trickle-down economics, which has been shown not to work and to hurt the middle class in the past. Wasik concludes that this loss of tax revenue will cause a budget deficit and force the government to borrow billions.
The president’s proposed tax cuts will benefit the economy and enrich America’s middle class, suggests Michael Tanner of National Review. He believes that workers and consumers take most of the hit from higher corporate tax rates as wages fall and prices rise. Lowering the corporate tax rate will benefit them, American businesses, and, therefore, the US economy, speculates Tanner. It’s a win-win situation for businesses and their employees and should be accompanied with spending cuts to have the biggest positive effect on the American economy, implies Tanner.