Who Benefits From Corporate Tax Cuts?

Taxing corporate profits is generally viewed by the public as a progressive and relatively harmless way to raise government revenue. But economists have long argued that when firms face higher tax rates, the owners are likely to respond by reducing investment, lowering employment or simply relocating to lower-tax locations. As a result, some of the burden of the corporate tax will be shifted onto workers in the form of lower wages, consumers in the form of higher prices or others, such as landowners.