The new Republican tax proposal has benefits and drawbacks, but it’s mostly a positive. That’s the take of Andrews University Professor Lucile Sabas. She teaches accounting and economics, and tells WSJM News what the House GOP has proposed would make a big difference for businesses.
“So far, the United States had a very high tax rate for companies,” Sabas said. “So, with this decrease from 35% to 20%, this number should encourage companies to increase their investment.”
Sabas also says most taxpayers would at least see some benefits, leading to greater consumption.
“Generally speaking, the middle class will be paying a little less in their taxes,” Sabas said. “So, it’s expected that it will have an impact on their consumption. This should increase consumption.”
The ones to lose out would be higher-income families. She anticipates the plan could spur economic development, assuming corporations are willing to get in the game. Sabas adds one thing ought to affect everyone: filing taxes will be easier assuming the reform proposal is passed.