ilmscore | Prediction Details
"See initially it was thought that if you lower the corporate income tax rates more companies would move their infrastructure back to the US they'd be more likely to reinvest back into infrastructure they would hire more employees and that would be good for the economy but even though more corporate money did end up moving back to the U.S many economists argued that that extra money saved mostly Fuel stock BuyBacks which boosted up the stock prices which is good for investors but not so good necessarily for everybody else Now if the tax rate gets increased to 28 percent it's unclear whether or not that higher cost is going to get passed on to consumers in the form of higher prices or if stock BuyBacks and corporate profits will decrease which might impact the future growth of the stock market it's still too early to tell although the tax Foundation did put together a very unique analysis that I think is worth discussing they estimated that a 28 tax rate would reduce GDP by 0.7 percent or 160 billion dollars stock and wages would marginally decline in 138 000 full-time jobs would be lost thankfully they estimated the loss would be gradual but it could amount to a GDP decline of nearly 720 billion dollars over 10 years which is larger than the 694 billion of tax revenue that would be generated in its place as a result they believed that long-term a higher corporate tax rate would result in incomes dropping by one and a half to two percent"
By Graham Stephan | March 30, 2022 | Pending
From video
It Started: My Thoughts On The Joe Biden Tax Plan 00:02:00 - 00:03:18
Interpreted Prediction
Increasing the corporate tax rate to 28% could lead to a decrease in GDP, stock prices, wages, and a loss of jobs, with potential long-term income drops. The Tax Foundation estimated a 0.7% GDP reduction and 138,000 job losses.

Prediction Details

Topic
Corporate Tax Rate

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