Do corporate tax cuts lift all Americans?

As policymakers push for corporate tax breaks to spur innovation, many Americans question whether these benefits will truly trickle down—or stay locked at the top.

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On the latest episode of Capitol Gains, the conversation turned to whether corporate tax cuts aimed at boosting innovation can truly benefit everyday Americans. Yahoo Finance Anchor Rachelle Akuffo asked if these measures might narrow the wealth divide, especially for the poorest Americans seeking upward mobility.

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London Business School Assistant Professor of Economics Joseba Martinez offered a historical perspective. He pointed to the 1950s and 1960s, when soaring innovation and productivity led to rising wages across the board. “Once technology gets into the economy, it raises labor productivity, it raises wages for everyone,” Martinez said.

Today’s challenges are clear. Sluggish growth and expanding inequality complicate the picture. Still, Martinez argued, igniting productivity could elevate all income levels. “Increasing growth so that…all the boats truly are rising would be fantastic,” he explained, adding that improved labor productivity should help not just top earners but also those at the bottom.

The key question is whether policies encouraging corporate innovation can deliver the widespread benefits seen in past decades. Ensuring that these measures lead to tangible gains for lower-income Americans remains a crucial part of the debate.

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To learn more, watch the full episode of Capitol Gains here.

Capitol Gains is Yahoo Finance’s unique look at how US government policy will impact your bottom line long after the Presidential election polls have closed.

This post was written by Langston Sessoms