Nope. I always maxed out English comprehension.LOL, Do You need help with understanding the word EFFECTIVE or sumptin' ?How deceptive of you.IMHO Depends on what those corporations spend the extra money on and what sectors we're talking about.https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0
This plan sounds great!
With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!
This is a WIN for the AMERICAN PEOPLE!!
Any thoughts?
Just some random observations based on this 15% outline of a plan to create a plan...
Average effective tax rate for large corporations right now is around 19% so we're looking at a roughly 4% boost to the bottom line, many of our largest corporations are already sitting on mountains of cash which means that it's not likely they're going to go on an expansion spending spree with a 4% bump, what's more likely to happen with those corporations is an increased pace of stock buybacks and higher dividends, which is good for investors but isn't likely to translate into a massive labor market expansion.
For foreign companies it does provide an attractive incentive to locate within the U.S. which is a good potential job creator as well as pulling in new investment to the U.S..
For SMB's it'll be a mixed bag depending on where they are now with taxes, it'll be great for the retail sector since it gets hit hardest by income taxes so I'd imagine we'd see some positive job creation there but less so for sectors with a lighter income tax burden.
All in all (if this ever becomes law, which is a BIG if) I'd expect this will be a positive for job creation and have a significant upside for investors as well as allowing certain sectors some cushion in terms of pricing, however IMHO it still doesn't go far enough (Corporate rates should be ZERO in my estimation).
The top rate is over 38%
I also know what "average rate" means, dickhead.