With President Trump set to announce his tax plan this
week, optimism regarding corporate tax cuts have helped increase financial
markets to near all-time highs. Trump’s outline has not gone without its fair
share of criticism though, citing the reform as an attack on the working class
to further fatten the pockets of big business.
Under our current tax system, corporations are taxed
thirty five percent, causing large employers to turn to other countries for
hiring purposes and decreasing the wages willing to be paid to employees to
maintain sufficient profit. Another setback we see with this model, is taxes
paid by corporations are largely passed down to investors, consumers, and once
again, workers. President Trump hopes to achieve corporate tax reduction down
to a flat fifteen percent, offering an incentive for business to increase
investments in expansion and innovation, while providing better wages for the
American worker and keeping jobs here at home.
In addition to the corporate aspect of Trump’s tax
plan, income tax for individual and married tax payers will be simplified from
the current seven brackets down to three, while also doubling the standard
deduction. These actions will benefit individuals from all class levels while
also incentivizing people to rejoin the workforce instead of relying solely on
government welfare.
As critics cry out in disdain, virtue signaling their
support of the working class while simultaneously swapping favors with the same
Wall Street bankers they claim to oppose, we should be willing to look
skeptically at the current flawed system and act on making fundamental changes.
