...... 46th president of the U.S. The very model of probity.......’s tax plan: It could hit you in the paycheck.
A new analysis from the Tax Policy Center shows the White House’s plan to hike the minimum rate on corporate taxes to 28 percent from the current rate of 21 percent will effectively hit the finances of lower- and middle-income taxpayers to the tune of $300 — in the form of lower wages.
Some readers may have understandably been scratching their heads on Monday when the Tax Policy Center’s report got released, as its verbiage framed the hit as an actual tax increase.
"About three-quarters of middle-income households would face a tax increase averaging about $300," according to the paper by Howard Gleckman. "But nearly all would be a result of those higher corporate taxes."
Reached after the report’s publication, Gleckman clarified that the $300 was actually a reference to his projections of lost compensation. In addition to companies cutting wages to offset higher tax bills, Gleckman predicts that anyone with a 401K will likely see their net worth shrink as the tax plan deflates the stock market.