Tax cut: Shoulda, coulda, will it?
Will the corporate tax cut benefit the middle class in some way?
1. Decrease prices for cars,gasoline and lot of other stuff.
2. Make the Affordable Care Act affordable. Drug and health insurance companies will lower prices and premiums. With all that extra money sloshing around corporate headquarters, surely those in charge will want to lower prices.
3. Allow corporations to reinstate pensions or vastly increase their match for 401k contributions for their employees. For some reason, I have not heard any talking heads discuss 1,2 or 3.
4. Incentivize companies to bring manufacturing jobs back to the U.S. This is what is hoped for by the talking heads.
Most likely the corp. tax cut WILL:
5. Allow the CEO, COO, and CFO, Chairman of the Board etc to get large pay increases. A lot of the extra dollars sloshing around the corporate HQ are going to flow into wallets that are already fat. That is simply human and corporate nature. If those execs also get a personal tax cut, that would be a double benefit. Double dipping is not generally accepted as good manners,
6. Allow large stock buybacks, which could benefit middle class 401Ks.
The talking head are not likely to ever mention 1,2,or 3.
The Corporate tax cuts will benefit the middle class somewhat, but probably not as much as it COULDA.