| Locknuts said: What's wrong with tax cuts for corporations? I don't understand this narrative. |
Well the idea of "tax cuts for corporations" is pretty fundamentally "trickle down economics". The idea is that if you help those at the top, the money will trickle down to those at the bottom. The problem is that it just doesn't really work. We don't see an increase in wages proportional to productivity or increases in wages with increasing revenue. The money that enters at the top tends to stay at the top.
Here we are talking about tax cuts, which means less revenue for the government. What does that mean? Well either it means decreasing federal spending or increasing debt. Increasing debt being a bad thing is pretty self explanatory, but what about decreasing federal spending? Well often that money comes from health care or SNAPs, or other programs which help low/medium income families ( http://www.cbpp.org/research/federal-budget/house-gop-budget-gets-62-percent-of-budget-cuts-from-low-and-moderate-income ). Cutting spending here hurts the lower and middle class, or it hurts the economy as a whole.
So what we have when we see corporate tax cuts is a system which rewards those at the top and penalizes those at the bottom. Thats whats wrong with tax cuts for corporations (in a very general sense).
This is why the flip flop on Trump's part here is a big deal. He went from imposing tarrifs as a way of incentivizing companies to stay in America to decreasing taxes as an incentive (not to imply that Trump hasn't always supported cutting corporate taxes. He has.). They are pretty fundamentally different ideas which move money in very different ways.
