Faculty News

Professor Robert Salomon discusses the Trump administration's proposed corporate tax cuts

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Excerpt from Thomson Reuters -- "If we lower corporate tax rates, corporations will have more cash available to then invest, which will also boost the economy. And this one time reduction in the repatriation tax will encourage companies to bring cash back from overseas and invest that cash here in the US. So all of those will be growth enhancing. But then you have to balance that with, will those growth enhancements generate enough revenue to offset the tax reductions that are potentially put in place? And we seem to know from past history that that does not tend to be the case. So even though the economy, the private side of the economy will probably grow as a consequence of these tax reductions, it will still have the effect of increasing the deficit and increasing the debt on net."