Corporate Tax Cuts Do Not Trickle Down

Supporting Evidence

This paper uses a multi-country economic model based on U.S. and Canadian data to examine how corporate income tax (CIT) cuts affect income inequality. It finds that CIT cuts can widen income gaps both within and between countries, especially due to differences in equity ownership across borders. While reducing barriers to capital mobility can help ease this inequality, lowering trade costs has minimal impact. The OBBB makes the corporate tax rate cut permanent.

See also: OBBB Breakdown: 3 to 5 Trillion Dollar Debt Increase

Primary Source
Source Title: International effects of corporate tax cuts on income distribution
Source Category: Peer-Reviewed
Source Format: Journal Article
Author(s): Siraj G. Bawa, Nam T. Vu
Publication Title: Review of International Economics
Volume: 28
Issue: 5
Pages: 1164-1190
Publication Date: May 26, 2025
DOI: 10.1111/roie.12485
Accessed: 2025-07-09
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