Updated: May 3
Congress reduced corporate income tax rates from 35% to 21% in order to stimulate growth in the overall economy, thus increasing tax revenue and potentially repatriating jobs.
Did you know that the AVERAGE corporate tax rate, according to the GAO using the latest data from IRS, for tax years from 2008 - 2012 was approximately 14.1% - which includes corporations with net operating losses?
If you exclude the NOL deduction, the corporate effective tax rate (average for all taxable income) is roughly 19.5% of taxable income, which is LESS than what they are attempting to implement!!
The federal government deficit will explode!!
In fact, the US deficit was $960B in 2019 and will increase to $1.2T during 2020-2029 according to the CBO.