Corporate tax cuts lead to lower wages and job losses, study finds.
The study looked at how changes in corporate taxes affect workers' wages in Germany. By analyzing tax and labor data, researchers found that when corporate taxes are reduced, wages don't necessarily go up - instead, companies may hire fewer workers. Taking this into account, a 1 euro cut in corporate taxes only increases the wage bill by 0.47 euro. This was discovered by comparing tax rates across different companies and time periods, using a special method to control for other factors.