Question

Should the decrease in the corporate tax rate be balanced by local action (such as subsidies to lower-income groups or by imposing taxes on corporations at a local level)?

Answer 1

The burden of the business tax is 100% borne by ordinary people(workers) if the corporate taxes are increased they will experience a lower wage, higher price. Here the business does not pay the taxes, the higher corporate tax is shared with the workers. So if there is a decrease in the corporate taxes it would be better to give subsidies to the lower- income groups, imposing taxes on the corporations would be probably a bad idea because the companies can shift the tax incidence on the workers.