Reducing the corporate tax rate from 35 percent to 21 percent was the crown jewel of Trump’s 2017 Tax Cut and Jobs Act (TCJA).
- It was good for workers since a lower rate means more investment, which translates to increased productivity and higher wages.
- And it was good for U.S. competitiveness since the United States corporate tax rate no longer was the highest in the developed world.
Some critics downplayed those benefits and warned that a lower corporate tax rate would deprive the government of too much revenue.
Since I don’t want politicians to have more money, that was not a persuasive argument. Moreover, I argued during the debate in 2017 that a lower corporate tax rate would generate “revenue feedback.”
In other words, there would be a “Laffer Curve” effect as corporations responded to a lower tax rate by earning and reporting more income.
Based…
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Utopia, you are standing in it! 
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