Republicans pushing for tax reform continually propose tax cuts—specifically for corporations and the wealthy—as a means of economic growth. In a new FAQ, EPI debunks several myths that are often cited in favor of tax cuts, including the notion that the U.S. corporations pay significantly more than their international peers, and the argument that cutting corporate taxes would boost job creation or wage growth. Below are some common myths that the authors debunk.
“Tax cuts that primarily benefit the wealthy won’t boost job growth.”
“Because of loopholes, U.S. companies only pay about half the official corporate tax rate.”
“Tax cuts now can set the stage for attacks on Social Security, Medicare, and Medicaid.”
“Reducing the number of brackets doesn’t make taxes easier—it makes them less progressive.”
“Cutting corporate taxes is not an effective way to raise working people’s pay.”
“Small businesses aren’t taxed like corporations. A corporate tax cut won’t help them.”
“Corporations use clever accounting to stash their profits overseas.”
“Corporations have billions of dollars overseas hoping Congress will let them bring it back tax free.”
“With profits near all-time highs, corporations don’t need another tax cut.”