GOP Tax Reform Boosts Wages According to Boston University Researchers

TAX REFORM UPDATE!!

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Researchers at Boston University Agree!

In a study published this morning analyzing the economic and revenue impacts of the Republican “Unified Framework” Tax Plan, researchers found:

The new Republican tax plan raises GDP by between 3 and 5 percent and real wages by between 4 and 7 percent.
This translates into roughly $3,500 annually, on average, per working American household.
The source of the increase in U.S. output and real wages is the UF plan’s reduction in the U.S. marginal effective corporate tax rate from 34.6 percent to 18.6 percent.
According to their model, the U.S. corporate income tax represents a hidden tax on U.S. workers.

New analysis from the Council of Economic Advisers proves:

Reducing the statutory federal corporate tax rate from 35 to 20 percent would increase the average household income in the United States by, very conservatively, $4,000 annually.
The increases recur each year, and the estimated total value of corporate tax reform for the average U.S. household is therefore substantially higher than $4,000 à The most optimistic estimates from literature show wages could boost more than $9,000 for the average household.
- A 15 percent corporate rate cut could increase average household incomes from $83,143 in 2016 to between $87,520 and $92,222.
- Median household income — meaning earnings for more of a typical household — would rise from $59,039 to between $62,147 and $65,486.
Literature finds countries with low corporate tax rates have seen higher wage gains than countries with high corporate tax rates.