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Kudlow’s Money Politics

Larry Kudlow’s daily web log of matters political and financial.

Cutting Corporate Taxes



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Many thanks to the Wall Street Journal’s editorial page for continuing my mantra that lower corporate tax rates will boost worker wages.

They cite economist Kevin Hassett’s worldwide study that capital migration in response to corporate tax rate relief improves economic growth, jobs, and wages.

But the editorial should have cited one additional fact – namely, 70 percent of the corporate tax cost is borne by wage earners (the remaining 30 percent is paid by shareholders).

My friend James Pethokoukis (aka ‘Jimmy P’) over at U.S. News & World Report has also picked up the theme of cutting corporate taxes to boost wages.

The bottom line here is that if companies paid less in taxes – or better yet none at all – then more money could be paid out to those who work at those companies.

Think of it.


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