Taxes

White House Advisers Imagine Tax Cuts Will Send Wages Soaring

Written by SK Ashby

The Treasury Department recently deleted an internal study from 2012 that found that employees and labor cover roughly 30 percent of the cost of corporate taxes. The Treasury under Secretary Steve Mnuchin deleted the study because it conflicted with their claim that labor actually covers 70 percent of the cost of corporate taxes.

It's the 70 percent lie that forms the basis of their next big lie.

Trump's economic advisers have now released their own study that says cutting the corporate tax rate will boost wages by a truly fantastical $4,000 per year

From the Wall Street Journal:

“There’s lots of evidence that wages respond to changes in corporate taxes,” Kevin Hassett, chairman of the White House Council of Economic Advisers, told reporters on Sunday.

“Based on the empirical record, the corporate tax can be counted on to boost profits, not wages,” said Jared Bernstein, a former economic adviser to Vice President Joe Biden. “The trickle-down chain from higher after-tax profits to more investment to faster productivity growth to U.S. workers’ paychecks may show up in CEA’s model, but it hasn’t been operative in the real world for decades.”

In this debate over whether or not empirical reality exists, it's clear who has Trump's ear.

That would be the same Laffer whose ravings virtually bankrupted the state of Kansas.

Trump and the GOP want to do the same to all 50 states.