Robert Reich Perfectly Explains Why Trump’s Corporate Tax Cut Is ‘Nonsense’

[Watch the video below]

Former Labor Secretary, and current explainer of complicated stuff, Robert Reich released a new video explaining why Donald Trump’s proposed corporate tax cut is “nonsense.”

Reich opens the video by reminding us that Trump claims the reason he wants to cut the corporate tax rate from 35 percent to 15 percent in order to make the United States more competitive.

However, as Reich points out, there are at least 7 reasons that Trump’s tax claim is nonsense.

Here are the 7 reasons Trump’s tax proposal is nonsense:

Reason #1: Profitable U.S. companies currently only pay a tax rate of 14% – which is less than half what middle-class Americans pay.

Reason #2: Trump’s corporate tax cut will bust the federal budget by reducing the amount of revenue the Treasury brings in by at least $2.4 trillion.

Reason #3: The Trump White House’s claim that the tax cuts will pay for themselves is fiction. Roland Reagan and George W. Bush both tried it and ended up leaving office with massive deficits.

Reason #4: Trump’s prosal has a giant loophole that lets hedge fund managers, real estate developers and other high-income business owners to slash their pass through income from their business.

Reason #5: Trump’s plan creates an international race to the bottom on corporate tax rates. Other countries will all respond by lowering their corporate tax rates too.

Reason #6: American corporations are already competitive and don’t need a tax cut. Profits are at record highs.

Reason #7: Corporations won’t use tax savings to create jobs, they will continue to pay executives and shareholders.