Adam Michel, The Heritage Foundation: How Corporate Tax Reform Affects You
Adam Michel, a federal tax policy expert with The Heritage Foundation, explains why President Trump and Congress’ proposed corporate tax relief could translate into higher wages for everyday workers.
Reducing the corporate tax rate boosts workers’ wages, Michel says, because the cost of investing in capital assets, such as machines, would be lower. More investments in capital allow workers to produce more, meaning businesses can afford to pay their workers more.
Cutting business owners’ tax rates is a key part of Congress’ plans to overhaul the tax code, Michel says, and making U.S. businesses more competitive with overseas companies is a primary goal for lawmakers this year.