1. Second Quarter GDP Rose by Better Than Expected 3.1%
2. Cutting the Corporate Tax Rate Would Benefit Everyone
3. Corporate Tax Cuts Great for Companies, Better for Workers
4. Benefits of Tax Cuts Go More to Workers Than Fat Cats
In my September 7 Blog, I argued that the sky-high US corporate income tax has been a big reason why worker wages have been stagnant for over a decade. As talk of a meaningful drop in the US corporate income tax rate has gained momentum in recent weeks, we have seen even more evidence of how a cut in the business tax rate could help worker pay.
Furthermore, there is growing evidence that a lower corporate income tax rate would not just help worker wages over time, but also pass down to better economic conditions in general. While the mainstream media continues to talk down a cut in the corporate income tax rate, I’ll argue just the opposite today. I think you’ll agree.
But before we get into that discussion, let’s take a brief look at last Thursday’s better than expected final report on 2Q gross domestic product.
Second Quarter GDP Rose by Better Than Expected 3.1%
US economic output grew at a 3.1% annual rate in the 2Q, slightly stronger than previously thought and marking the best growth in two years, according to the latest report last week. The estimate, based on revised data released by the Commerce Department on Thursday, replaces a previous tally of 3% growth. Economists surveyed by The Wall Street Journal had expected the estimate to remain at 3%.
While the 3.1% showing in the 2Q was slightly better than expected, the economy at its core remains stable, as steady job growth and a booming stock market encourage households to spend. Consumers accounted for more than two-thirds of economic growth in the 2Q with spending rising at a 3.3% annual rate.
Yet the slightly better than expected report did little to alter the picture of an economy that rebounded in the spring after a lackluster winter and then lost momentum in recent months as hurricanes tore into Texas and Florida.