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RE: Cutting Taxes VS Cutting Spending

in #taxes6 years ago

"Trump will cut tax rates, both corporate taxes and individual income taxes, from 35% to 20% .This plan actually has two implications, positive and negative," For the positive impact, people will have higher purchasing power (disposable income) which will encourage an increase in the multiplier effect of consumption consumption. "The corporation will also be more eager to raise its production capacity by paying lower taxes, so the funds can be used for investment, and the downside of the US government revenue due to the tax cut will definitely have a negative impact on the fiscal side and there will be additional debt withdrawn and caused massive unemployment so that the government donald trum is not paying attention to the people.

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