Earlier today it was leaked, in the newly proposed tax plan, that the corporate tax rate would be around 15%. I for one think this is a good first step in the right direction. Right now it is set at 35%, one of the highest in the world. Now most Americans do not know fully what this is, I myself don’t fully understand it all either, but I grasp the overall concept of it. Basically for every dollar made by a company they are taxed that percentage. So if they make a 100 cents, they are taxed 35 cents, theoretically. Most companies find little ways to lower that rate. Thanks to the elites in government, they have made all of these loopholes for them to take advantage of, so they really only pay around 25%.
The other way of understanding this is how they compensate for the tax. Who gets hit with the bill is the worker and the consumer. The worker gets lower wages and the consumer gets higher prices. Corporations are just people, without people they would be nothing but an empty building. So the employee and the person buying the products are the ones who get stuck paying for that. Unfortunately the government saw fit to tax them a high amount instead of just making it lower. Ideally we would just get rid of the tax all together and go more towards a cash-flow style of tax or no tax on business at all. That way the worker and the consumer would get higher wages and lower costs. So Trump saying it will be at 15% is definitely a step in the right direction. We’ll see what he proposes for the rest of it soon enough, Hopefully he lowers the taxes and also makes massive spending cuts. We need more Americans keeping their money and we also need the federal government spending less and doing something about this debt issue.