NC State Economist Mike Walden: Taxes, Businesses, and Wages

An on-going debate about the impact of the new federal tax plan is the impact on workers and their wages.  One issue is how much of the big reduction in corporate income taxes will benefit workers.   I understand there is some timely new research that directly speaks to this issue.  What does the research say?

  1. by an international organization called the Organization for Economic Cooperation and Development
  2. using country data to examine if tax cuts to corporations ultimately improves worker wages
  3. after examining scores of studies, the OECD concluded, yes
  4. find that between 30% and 70% of savings in corporate income taxes ultimately occurs to workers of the corporations
  5. some is from direct pay raises – already have seen
  6. but more importantly – much due to investments corporations make that improve worker productivity and corresponding higher pay