Why do you say that?

Trump’s tax reform act had two parts… business taxes and individual taxes…

Frankly, the individual tax cuts which impacted everyone but did benefit those with more income. I could have passed on them.

But the business tax cuts were essential to make the US competitive and Biden’s tax proposals are a disaster. In my early life, I did ROE calculations to determine where the company I worked for should invest. Basically, we invested where we could earn the highest after tax return.

So compare a company thinking about investing to build a plant in the US versus a country with lower tax rates. Typically, the other country has a cheaper labor and cheaper land. The US often has lower cost energy, plus if you build a product overseas for the US market, you have to pay shipping costs to get it to America so you can sell it.

But if you have to reduce the profit of something made in America by 40% (the combined Federal and State tax rate prior to the Trump’s tax reform) versus 28% for the combined rate today, well often you end up building the plant someplace else. So those those good factory jobs for working men and women get sent overseas. In a way, at the state level, New York lost thousands of good jobs when AOC complained about the tax package the state and city offered Amazon… what happens at the state level happens at the international level…

In addition, overtime markets tend to dictate profit margins. So a sudden decrease in taxes will result in some “windfall” profit for corporations, but within three years either wage gains or price cuts will eat away the “windfall” profit. Don’t believe the money ends up in wages… during Trump’s pre pandemic economy wage gains by workers were the highest in a decade… not an accident… these stats are according to the BLS (Trump says they were the highest in many decades but that is an exaggeration… they were only the highest since 2009.

At the more granular level, working women with young children in childcare benefited more than most with the enhanced child care benefit. Higher income earners in high tax tax states saw very little benefit since the lower tax rates were more than offset by lost tax deductions on state income and property taxes.