Question about Trump's tax plan

From what I understand, the cut to the corporate rate will come with hope that companies that moved their companies overseas will come back with a lower tax rate.

Could mean trillions in revenue. Or it could fall on it's face if none of them come back.

That makes sense, but as you stated, it would require those companies to want to play ball so to speak. I admit I'm a big fan of bringing over seas money back into our own economy. It'd be great if that worked out. I just don't want to see us go into an even bigger hole just to bring home a little extra every month. Seems like the cost would outweigh the goal.

I don't want to necessarily keep the same strategy. Don't get me wrong. I'm just trying to figure out where the money will come from once we lower taxes.

I mean realistically right now when most people get extra income, say from income tax returns or when they've pushed out stimulus checks in the past, people usually just pay bills with it instead of putting it back into the economy. People have bills to pay. It's understandable.

So realistically we can't depend on the tax cuts to immediately help regenerate the economy and get the money flowing, so we cut spending like you mentioned. But what do we cut? Again I don't think cutting social programs and obamacare are going to cover what it's going to cost for the plan he has on his page to work without adding to the debt. Where else would we cut the spending?

I'm not an economist, or anything, just a worker with a family just like most of you guys. So I'm just trying to piece it together. I'm excited about getting our economy back on track and getting things rolling again. Just want to see us do it right.

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I'm not an economist, or anything, just a worker with a family just like most of you guys.

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Understandable. Im not an economist but I do understand economics very well.

You first have to simplify things. Lets say T= taxable income and R= tax rate X= tax revenue

T x R = X

There are two ways to increase X and that is to raise T and/or R. You can raise taxable income by increasing the # of taxpayers and increasing the amount of taxable income the taxpayers are making

R can be raised BUT doing so lowers T.

You might ask "why does raising R lower T"?

Good question

Raising rates forces companies to make a decision which is COMPLETELY based on numbers. Will it be cheaper to just pay the tax rate OR move the business and/or manufacturing to a country with better numbers.

Some might bite the bullet and lower wages(or not raise them) for their employees. Ultimately a domino effect takes place where less money earned by workers/owners in a company results in LESS spending by those workers/owners in other businesses and vice versa...resulting in...a lower T number for our equation.

On the other hand..lowering R has the exact opposite effect and results in an exponentially higher T number.