Higher wages lead to tax reform
Progressive income taxes are the fairest and most equitable taxes in America today. Unfortunately, corporate income taxes are not progressive, but at a flat rate. Income taxes are only paid on net income after a myriad of deductions and expenses. President Donald Trump and the Republicans reduced those taxes.
As federal revenue decreases, there will be less federal money flowing to states and cities. Their shortfall will be met by increases in sales and property taxes, the most regressive and unfair taxes of all.
How will this help the middle class that Trump so claims to champion?
If corporations want to lower their taxes, just increase wages. This will increase deductions, lower the taxes and put more money in the hands of consumers who will spend more and increase corporate revenue. Simple enough.
Richard Kuehl
Harrodsburg
This story was originally published December 20, 2017 at 7:21 PM with the headline "Higher wages lead to tax reform."