U.S. companies are on track to see dramatic reductions in their tax rates, thanks to the $1.5 trillion tax cut package passed by the GOP-led Congress and signed by President Donald Trump in late 2017.
Unfortunately, it’s far more likely that shareholders, not U.S. workers, will reap the biggest benefits from the Trump tax cuts, despite a handful of companies that have handed out “Trump bonuses” and pledged to pay their workers more.
If we really want companies to do right by their workers, we need stronger incentives. One way to do this is to establish a preferential tax rate for companies that organize themselves as “benefit corporations,” a new legal structure that allows corporations to pursue missions other than just profit.
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