Part 10/17:
The conversation then shifts to tax proposals, notably the increase of the U.S. corporate tax rate from 21% back toward 28%, and the possibility of long-term capital gains rising to around 40%. Lynn doubts the full implementation of these ambitious hikes due to political gridlock, especially with a narrowly divided Senate.
He elaborates that lower corporate taxes have historically incentivized share buybacks and dividends, often favoring shareholders over job creation. The trend over recent decades points to declining effective corporate tax rates amidst rising payroll taxes and healthcare costs, which collectively burden labor-intensive sectors—another reason for uneven economic growth.