A Tax Cut That Works For All Americans

When you hear the phrase “corporate tax cut,” what do you picture? Middle-class workers, or Uncle Moneybags, the character from the Monopoly board game?

Probably the latter, unfortunately. Too many Americans buy into the popular misconception that such a cut would benefit only financial fat cats.

And who can blame them? Who’s telling them the truth: that a tax cut for corporations is a tax cut for the average American?

The United States has the highest corporate tax rate in the developed world -- a top marginal federal rate of 35 percent (38.9 percent when you include the state average). At first glance, sure, this levy seems to hit the rich and those who own corporations the hardest. A grumbling worker might think, “Good riddance!”

But that reaction makes a lot less sense when you consider what the corporate tax does. Business owners wind up with a lot less money to spend. That means they’re investing less in the very businesses that employ the grumbling worker and his colleagues. That means fewer jobs. Lower wages. Less-competitive businesses.

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