Question

3 Pros and Cons on Trump Tax Cuts.

Answer 1

Pros:

-- The bill reduces the corporate tax rate from 35 percent to 21 percent; therefore ensure that rates of tax on income from "pass-through" businesses (including sole proprietorships, partnerships, and S-corps) would be reduced. Thus will incentivize employers to create more job opportunities, in turn giving people more money to spend in the economy

-- The businesses can also reap the benefits of involve expenses that which can now be write off to save more money on taxes. It includes the interest paid on loans, full cost of new equipment, and charitable contributions.

-- The reduced tax rates, taxation only on earnings made in the U.S., and the ability to write off investments means more capital for the companies thus increasing the wages of middle-class through pay raises and more hiring.

Cons:

-- The tax cut will raise the government deficit. As per the Tax Foundation, fully implementing of the changes to the tax code will lead to loss of nearly $1.5 trillion of federal revenue over the subsequent decade

-- It may not be immediately apparent to a business owner on how a debt crisis which is an ever-expanding will impact them. But it increasingly worrisome concern may have serious tangible consequences for their business in future.

-- The firms don’t change hiring due to the changes in the tax burden. The growth in a capitalist economy is from the bottom up, and not top down as the former is the core of demand for products and services