MSNBC host Stephanie Ruhle was schooled on economics for the second day in a row, this time by White House official Linda McMahon, who defended a corporate tax cut for small businesses.
Ruhle challenged Rep. Jim Jordan on a tax cut Monday, arguing that most businesses pay much less than the codified 35 percent tax rate.
“Any tax code on the corporate side that says to American corporations, ‘you’re gonna pay the highest rate in the world,’ is stupid,” Jordan responded.
Ruhle tried to use the same argument on McMahon, telling her, “when you look at small businesses…most [of the ultra-rich] actually pay less than 15 percent. So if your average small business out there…how does that new tax plan really help them?”
President Trump’s administrator of the Small Business Administration fired back by relaying the concerns of small businesses and their desire for a tax cut.
“If they’re already paying 15 percent, where’s the benefit?” Ruhle argued.
“They are paying more than 15 percent,” McMahon corrected. “Most of them have sub S corporations and LLCs and that pass-through is taxed at ordinary income rates.”
“So if they have the 15 percent, that’s going to be more money in their pocket and they’ve told me ‘hey, look, we’ll spend that money on marketing dollars, on hiring new employees, and on expanding our business.'”