Absent foolproof enforcement, however, corporations could still seek lower tax locales to stash their on-paper profits. Massively Expand The Earned Income Tax Credit One of the most direct ways to help struggling Americans is to literally give them more money. Unfortunately, major cuts in income tax rates, by their very nature, disproportionately benefit the wealthiest 20 percent of earners who pay a majority of the country’s income taxes. By contrast, those same earners pay a 39.6 percent tax rate on all ordinary income above $418,400. “If you wanted a populist reform, you’d start by getting rid of the capital gains tax break.” Conservative economists argue that raising the capital gains tax rate would discourage investment in the economy.

Source: Huffington Post August 31, 2017 14:15 UTC