Republican presidential nominee Donald Trump’s proposal to further reduce the U.S. corporate tax rate from 21% to 15% would make the bottom half of the nation’s income distribution poorer while boosting the fortunes of those at the very top, according to an analysis published Thursday by economists at American University.

The analysis, released just over a month before the high-stakes November 5 election, projects the hypothetical macroeconomic and distributional impacts of corporate tax rate plans put forth by Trump and Vice President Kamala Harris, the Democratic nominee. Harris has called for increasing the corporate tax rate to 28%.

If implemented, the economists found, Trump’s plan would “modestly reduce” the nation’s gross domestic product (GDP), decrease government revenue, and “significantly increase inequality,” given that wealthier households “are the primary owners of corporate stocks” that would benefit from the former president’s tax cuts.

The “share of national income going to the top 5% would increase by around 1.6%, while the share of the bottom 50% would fall by roughly 4.8%,” the analysis estimates.

Harris’ plan, by contrast, would “mildly” raise U.S. GDP, increase federal […]

Read the Full Article