New economics research shows why Donald Trump’s corporate tax cut won’t boost paychecks
https://qz.com/1304713/tax-havens-ex...ost-paychecks/
The corporate tax cuts enacted by president Donald Trump and the Republican party are supposed to lure investment back to the US, leading to an increase in wages for working Americans.
But workers’ wages have grown half as slowly in the first five months of 2018, with the tax law in force, compared to the first five months of 2017. And average worker wages were actually higher before the tax law was enacted.
Why haven’t predictions of rising wages come true? An ambitious new paper released by economists Thomas Tørsløv, Ludvig Wier and Gabriel Zucman argues that the tax bill contains a fundamental misunderstanding about global capitalism.