I'm a CPA. There's a great deal of confusion about the tax bill that is going through Congress. Most people don't understand that there is a distinct difference between individual and corporate tax cuts. When individuals receive a tax cut they will immediately increase their saving and/or spending. When large publicly-traded corporations receive a tax cut they will gain no advantage over their domestic competitors because they received the same tax cut.
However, if they have foreign competition their business position will improve. In addition, a corporate tax cut puts pressure on reducing the prices of their products and services and wage increases for their employees. All it takes is for one of their competitors to reduce prices and/or increase wages because then the whole industry will have to follow suit.
Douglas R. Holm
Disclaimer: As submitted to the Arizona Daily Star.