This tax reform bill is stupefying. I will admit that I’ve looked at what we’d save and it looks like for my wife and me, we would see a pretty good savings. Not life changing, but a dollar is a dollar.
What bugs me though is the corporate tax cut. The folks behind it claim that companies are chasing lower tax rates in other countries. What I’ve witnessed are two things: 1 - companies aren’t chasing lower taxes, they are chasing lower labor costs. If you look where they are ‘hiding’ their foreign revenues, its in countries where they can hire four people for the cost of one American. Current tax law incentivizes this behavior. My old company, Verizon, hasn’t paid corporate income tax in almost a decade. So what they get won’t go to raising employee salaries but will be used to buy back stock.
And even if it resulted in raises for US workers, it would make offshoring even MORE of a good deal.
2 - cutting revenues in the name of attracting business has been tried in several states and has failed in each and every case. This is extremely fuzzy math.
If this is about the middle class, then lets cut taxes for the middle class. Why do we have to give more money to US companies who are already raking in record profits?
To me, this thing smells.
BKB