The Wall Street Journal's Richard Rubin first reported that the analysis—published in 2017 by the Office of Tax Analysis (OTA)—was deleted from the Treasury Department's website on Thursday.
The suppressed study (pdf) demonstrated that “workers pay 18 percent of the corporate tax while owners of capital pay 82 percent,” Rubin noted, a breakdown that the Trump administration and the Republican Party has effectively reversed in selling their proposals to the American public.
OTA’s conclusions were “in line with many economists’ views and close to estimates from the nonpartisan Joint Committee on Taxation (JCT) and Congressional Budget Office,” Rubin adds. “The JCT, which will evaluate tax bills in Congress, estimates that capital bears 75 percent of the long-run corporate-tax burden, with labor paying the rest.”
Treasury Secretary Steven Mnuchin has argued, against mountains of contrary evidence, that it is in fact workers who end up bearing the brunt of taxes on corporate profits, thus allowing him to paint a massive rate reduction—which Trump has proposed—as a boon for the working class.
As The Week’s Jeff Spross observes, this is a common right-wing argument. But while conservative think tanks like the Heritage Foundation claim that corporate tax cuts lead to higher wages for workers, the last several decades of evidence indicate the opposite, Spross concludes.
“[W]henever a company gets a windfall,” Spross writes, “the money goes to wealthy shareholders, CEOs, and the lucky members of the upper class.”
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