Hubbard Says Tax Reform Needs Lower Rates, Higher Wages

The video discusses the potential for economic growth through corporate tax reform, highlighting the debate between personal and business tax cuts. It explores how tax cuts could influence investment, productivity, and wages, while addressing concerns about the economy's slow growth. The discussion also touches on the challenges of funding tax cuts and the differing perspectives on their impact.

What is one of the main arguments for corporate tax cuts according to the first section?

• They lead to increased investment and productivity.

• They reduce the need for personal tax cuts.

• They automatically pay for themselves.

• They are primarily beneficial for small businesses.

Why might companies be hesitant to invest despite low capital costs?

• They are focused on reducing operational costs.

• They prefer investing abroad.

• They are concerned about the slow growth of the economy.

• They are waiting for higher interest rates.

What is one potential benefit of tax reform mentioned in the second section?

• It can lead to more foreign investments.

• It can decrease consumer spending.

• It can change investment expectations.

• It can increase the cost of capital.

According to the final section, what is a challenge associated with personal tax cuts?

• They require funding through other means.

• They are not popular among middle-income households.

• They do not affect consumer demand.

• They are easier to implement than business tax cuts.

What does the Big Six plan propose regarding tax rates?

• Raising taxes on lower-income households.

• Cutting marginal tax rates for households.

• Eliminating all personal tax deductions.

• Increasing corporate tax rates.