Read the ariticle and then answer the questions: Question: THE president\'s tax

Question

Read the ariticle and then answer the questions:

Question:

THE president's tax promise has always been clear: he will reduce the amount Trump releases a plan, analysts say it does almost the opposite. The Tax Policy Centre, a think-tank, recently filled in the blanks in the latest Republican tax proposals and concluded that more than half of its giveaways would go to the top 1% of earners. Their incomes would rise by an average of $130,000; middle- earners would get just $660. The White House maintains that tax reform will deliver a much heftier boost to workers' pay packets. Who is right? The disagreement boils down to who benefits when taxes on corporations fall. The Tax Policy Centre says it is mainly rich investors. But in a report released on October 16th, Mr Trump's Council of Economic Advisers (CEA) claimed that cutting the corporate-tax rate from 35% to 20%, as Republicans propose, would eventually boost annual wages by a staggering $4,oo0-9,000 for the average household

Explanation / Answer

With Corporate tax cut from 35% to 20%, the shareholders, workers, and the landowners are expected to benefit.

Workers will get the benefir in terms of higher wages.

The tax cut will bring in capital mobility in terms of FDI and FII investments in the US

tax cut might increase the interest rates because with more purchasing power in hands of people will increase the demand for money in the economy. the increased demand for money would increase the interest rate in th economy. As a result of increase in intgerest rate, investmnet would fall.

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