Recent discussion around how to raise federal revenues have focused heavily on the corporate tax rates. During the Trump administration federal corporate tax rates in the United States were reduced from 35% to 21%. The Biden administration, however, had proposed raising rates up to 28%.

 

1. 1) How can lowering the corporate tax rate encourage economic growth and/or economic fairness?
2. 2) How can raising the corporate tax rate encourage economic growth and/or economic fairness?
3. 3) How do you think businesses will react to an increase in the corporate tax rate?
4. 4) Do you believe the corporate tax rate should be increased from its current levels?

Answer rating: 100% (QA)

Lowering the company tax charge can inspire monetary increase via way of means of liberating up extra cash for corporations to spend money on increase ... View the full answer