As many of you have probably heard already, the Trump administration has passed a bill that will be slashing taxes on the corporate level. The main point was slashing the 35% rate down to 20% for incorporated organizations. The administration says it will be a great benefit for all, but how true is this?
Many of these corporations that are making millions of dollars will be getting a bonus of hundreds of thousands of dollars. Small businesses will unfortunately not see a great difference in their balance sheet. Trump said that this will help entrepreneurs and small businesses. However, any start-up that is pre-revenue or have recently broken even will not see any change, meanwhile the big players in the market will have greater resources and cash to squash the “mom and pop” shops. With trickle-down economics, it will really depend on the company and how much they decide to share.