> That 21% tax rate relies on paying employees more?
I'm not sure what you're asking.
The 35 -> 21 change is the actual corporate tax rate change that happened end of last year in the US.
You don't _have_ to pay your employees more to be taxed at the 21% rate. But at the new tax rate you _can_ pay your employees more and till make more of a profit.
So in the end the whole question is where the money that would have been paid in taxes goes instead. It could be going to stock buybacks, dividends, investment in the company, raises for employees, or just sitting in the company bank account. In real life the answer is probably "all of the above" and the proportions vary.
Again, I'm not sure whether I answered your question, because I'm not sure what you're asking.
I'm not sure what you're asking.
The 35 -> 21 change is the actual corporate tax rate change that happened end of last year in the US.
You don't _have_ to pay your employees more to be taxed at the 21% rate. But at the new tax rate you _can_ pay your employees more and till make more of a profit.
So in the end the whole question is where the money that would have been paid in taxes goes instead. It could be going to stock buybacks, dividends, investment in the company, raises for employees, or just sitting in the company bank account. In real life the answer is probably "all of the above" and the proportions vary.
Again, I'm not sure whether I answered your question, because I'm not sure what you're asking.