Corporate Tax

Economist Paul Krugman was surprised when he defended Trump’s failure to chop corporate taxes

Nobel Prize-winning economist Paul Krugman is surprised that Republicans are so strong in defending the Trump administration’s whopping 40% cut in corporate tax rates, describing it as a “bleak failure” in stimulating the economy, as promised – in fact before the pandemic.

President Joe Biden is trying to increase corporate taxes from 21% to 28% in order to get back part of the tax rate companies paid when Donald Trump moved into the White House. (They paid a rate of 35% at the time.)

Trump claimed the tax cut would boost business investment and increase jobs and wages. Instead, instead of expanding their business, many companies took advantage of the tax burden to buy back their own shares at record prices. Wage growth has been less than expected and the cut has not paid off as Trump had promised. Instead, the massive corporate tax break helped the nation run record (pre-pandemic) deficits.

Dozens of the largest companies in America again failed to pay taxes last year.

I was a bit surprised to see some Republicans reject Biden’s plans, claiming that the Trump corporate tax cut had been a huge success. I thought they were hiding because they failed so bleakly. 1 /

– Paul Krugman (@paulkrugman) April 5, 2021

I mean, we have been promised a huge surge in business investment. Here’s what actually happened 2 / pic.twitter.com/0MMGaFOddI

– Paul Krugman (@paulkrugman) April 5, 2021

But stupid me. The players involved here have a long history of denying simple facts that conflict with their agenda. Do you remember how Rs reacted to the surge in Obamacare enrollments? 3 / https://t.co/Y0X9TdS0dV

– Paul Krugman (@paulkrugman) April 5, 2021

So I’m making a prediction: if the economy is booming we will see claims that the boom is fake, that Biden is cooking the books, and that Trump deserves recognition 4 /

– Paul Krugman (@paulkrugman) April 5, 2021

Krugman said he shouldn’t be surprised at the Republicans’ past revisions, given their “long history of denying simple facts that contradict their agenda”.

He predicts that they will next claim that Biden “cooks the books” and that Trump “deserves credit” for a strong economy.

If you paid $ 120 for a pair of Nike Air Force 1 shoes, you have paid Nike more than federal income taxes in the past three years, while the company made $ 4.1 billion in profits and is the founder from Nike, Phil Knight, received over $ 23 billion richer. Yes. We have to #TaxTheRich.

– Bernie Sanders (@BernieSanders) April 2, 2021

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