Taxation Concepts and Pass-Through Entities

The video discusses Donald Trump's use of the tax code to benefit from lower individual tax rates through pass-through entities, which are typically used by small businesses but also by large corporations like The Trump Organization. It explains the proposed tax reforms by Trump and House Republicans, which aim to lower corporate tax rates and create a special tax rate for pass-through businesses. The potential impact of these reforms is analyzed, highlighting that the top 1% would benefit the most, while mainstream economists doubt the link between corporate tax cuts and increased worker wages.

What is the rank of The Trump Organization among private corporations in the US?

• 60th

• 10th

• 25th

• 48th

How does Trump benefit from the tax code?

• By paying only corporate taxes

• By paying a flat tax rate

• By avoiding all taxes

• By paying only individual tax rates

In the sandwich shop analogy, what tax rate does an employee pay?

• Flat tax rate

• Individual tax rate

• Corporate tax rate

• No taxes

What is the average federal tax rate for pass-through entities?

• 15%

• 19%

• 32%

• 25%

What is a key characteristic of pass-through entities?

• They are only for large corporations

• They have more than 100 shareholders

• They pay taxes like individuals

• They pay taxes twice

What tax rate does Trump propose for pass-through businesses?

• 35%

• 10%

• 25%

• 15%

What is Paul Ryan's proposed tax rate for pass-through businesses?

• 20%

• 25%

• 15%

• 30%

Who would benefit the most from Ryan's tax plan?

• Middle-class families

• Small business owners

• Government employees

• The top 1% earners

What is the belief of Trump and Ryan regarding tax cuts for businesses?

• They will decrease unemployment

• They will reduce inflation

• They will raise wages for all workers

• They will increase government revenue

What do most mainstream economists believe about the link between corporate taxes and worker wages?

• There is a strong link

• There is no link

• The link is weak

• The link is growing stronger