Here we go again. Earlier this year, Trump said he was going to deliver the best health care that covered more people with more benefits at a cheaper cost. And that didn’t happen because it couldn’t. Now he wants to lower taxes on corporations and small businesses so they can raise wages for their employees and create better jobs. I hope Montana voters aren’t buying this because it is just more snake oil.
Yes, our corporate tax rate is 35 percent, but this is a meaningless number because literally no company pays taxes at that rate. The real tax rate is the “effective tax rate” and the Congressional Research Service says our effective tax rate is 27.1 percent which is similar to the other 30 largest countries. So the argument that we need to lower the tax rate to make our companies more competitive is an argument not supported by the facts. And this change only effects about 1.5 million businesses because most businesses are LLCs and they pay taxes at the individual income tax rate.
The stock market is at record levels, corporate profits are at record levels and all of these companies are sitting on piles of cash. They could be paying better wages, creating better jobs and investing in new plants with that money but they aren’t. A tax cut for them will just mean more money for dividends and stock buy backs and bigger federal deficits for us. Montanans should tell our Congressman we want change that actually reaches us not just corporations and their stockholders.