Who Gains From the Tax Plan? Economists Face Off<br />This capital deepening — having more and better capital for each worker — reverses recent trends and raises productivity growth.<br />Better incentives — like lower tax rates, being able to write off investments, taxation only on<br />earnings in the United States — will encourage innovation, investment, hiring and pay raises.<br />Critics say the proposal would reward companies for tax-avoidance strategies without — based on past cases — an economic dividend.<br />Faster productivity growth will translate into more compensation — wages and benefits — for workers.<br />hands went up at a recent event when asked if they would use tax cuts to increase investment; few companies plan new investments in response.<br />There is simply no economic rationale for a windfall to shareholders based on their prior tax avoidance, and there is no economic evidence<br />that such windfalls promote United States investment or job creation.
