As I understand it, the Presidents tax plan is not ment to directly help the working class. Instead the tax cuts are designed to help large companies feel confident that if the earnings are reinvested in Amercia then President Trump wants to make it so that the us. goverment does not rape and loot the savings accounts of the companies.
For example a company called A.C.M.E Fans used to be based in the U.S. but law were passed that made it expensive for A.C.M.E. Fans to operate in the us. So the company laid off 1,000 U.S. workers and moved to India. The way that the tax code was written if A.C.M.E Fans exported the money that was made back into the us. then the money would be subjected to stiff tax penelties.
The Presidents tax plan is not aimed at the 1,000 factory workers. Instead the tax re-formating is designed to lure A.C.M.E Fans back into the U.S. Once the company is back then the 1,000 factory workers will get there jobs back. Say the company opens an office in small town Ohio. Suddenly new markets start to open up, the town used to not be able to support a hardware store but now a hardware store with 3 employees are needed.
Stop thinking of the economy like it is a pool. Instead think of it like a water pump
Its an economic principal that if money is used then more wealth will be created. The President is not just wanting to bring acme fan co. pool of money into the us. HE is proposing that the fan company starts to pump water into this country, and in turn the employees will start moving money around.
The President's tax plan requires a deeper level of thinking, just like it requires a deeper level of thinking to understand that low wage workers are going to not profit all that much if the minimum wage is raised.
