Only in comparative terms. I own a manufacturing firm. The decision to build a new plant will not be based on taxes but rather demand for products. Where we put the plant will be partially determined by relative tax costs.
yours' a slightly different scenario. the examples I gave are multinational corporations, which most of the sp500s are... they usually have multiple legal entities in different countries, and thru 'inter-company sales' it's easy to move profit anywhere they want... and in some cases they create a new legal entity just for this purpose if one doesn't exist yet in the desired country.
I think a huge factor is the movement for "living wages". This might be specific to certain cities, but some at least have taken the approach that minimum wage isn't enough to provide the basic necessities. If a living wage is considered to be lets say $12, and minimum was a few dollars lower, then this fairly significant bump will skew the results of that blue line quite dramatically. The living wage would also have nothing to do with Trump, but more so realizing that in expensive cities, its virtually impossible to find someone willing to work for $8 per hour and expect them to commute 2 hours a day. Plus, tax cuts have really nothing to do with what wage you are earning. What your employer pays you, from his point of view, has nothing to do with how much you will end up paying in taxes when you file. In fact, if the employer knows that this year you will be richer because you will get a bigger tax refund, he may very well use this as a reason to not give you a raise since he knows you will be getting compensated by the taxman.
How about the whole debate becomes pointless because all you have to do to get growth is change your pension policy. Oh and here is a really big point that everyone seems to have missed, perhaps you haven't appreciated in the impact the current pension saving system has on economic growth which in itself through the natural choices of people contributing into a pension and the incorrect control or allowances of this process has an impact on rates of consumption (namely growth) and aggregate prices (namely inflation). Trump could quite easily dismiss the whole of the economic community and simply explain. The below statement is from the economist Peter James Rhys Morgan. "There has been this really big error in economics where no one has appreciated the impact pension saving has on the rate of spending and prices levels, which if not managed correctly can lead to distortions in growth rate predictions, inflation and interest rates. Manage it correctly and you can control economic growth, inflation and interest rates effectively and make treasury cost efficiencies. Look at the United Kingdom over the last ten years as evidence of this." It is really easy for him to do it and move the country and the economy forward and cut down government debt in unison. The debate about economic growth and other economic factors must include the rate at which the population save into their pensions each year. Just not appreciating that saving mechanism has led to distortions in economic predictions and financial consequences, manage it and there is a way forward.
the living wage movement started in the 1930s, no? the graph shows an economical cycle event, not really a movement... notice the drop after the 08 crash... also the high wage orange line is fairly flat - highly skilled key employees have more stable positions/pays thru the cycles, while lower wage lower skilled positions get cut/added during the bust and boom... right now we are in a boom.
So then why are interest rates so low? And why does Trump keep scolding the Fed for not doing more to help the ("booming") economy?
I mentioned briefly in a previous post... but since you are asking I think Trump is looking for an even weaker dollar to boost export... look at the USD index around 07-08 before the crisis... if the dollar is 20% cheaper the dow can easily be 10000 points higher, in his words. since the '16 election the Fed raised and tightened and then cut and stopped the QT... but the dollar hasn't really moved. the cuts are necessary because all the other CBs are cutting and are at zero or negative, if the Fed doesn't respond the dollar will be too strong for the US exporters.
Here is my solution to the low wage issue. http://morganisteconomics.blogspot.com/2018/05/an-answer-to-pay-disputes-make-sure-you.html?q=r-paid