The US Government's plans to cut corporation tax could lead to a significant boost in household wages, according to the White House. A report by the President's Council of Economic Advisors claims that the proposed 15% cut in corporation tax would increase annual household income by $4,000 or more. Analysts argue that this figure is largely exaggerated, and would be unevenly distributed across the population, with higher income households receiving the bulk of the benefit. While this is obviously good news for US companies and UK groups with exposure to US tax - it is likely we will see increased investment activity to take advantage of these reforms, it isn't clear the extent to which American workers will benefit.
There are many questions surrounding how the US tax environment will change and we are likely to have a better picture at the start of the new year when it will be clearer what the Trump administration is capable of pushing into law.
A report by President Donald Trump’s Council of Economic Advisers says that mooted cuts to corporation tax from 35 per cent to 20 per cent — one of the goals of the Republicans’ tax package — would lift average US household income by $4,000.