Effects of Corporate Tax reduction by Govt

What does it mean by reduction in corporate tax rates by Govt:

For corporates:

1. Additional revenue or,
2. Pass on to consumers in form of reduced prices

Post effect:

1. If corporates keeps it as additional revenue it will come to investors in form of capital appreciation or dividend payout or additional capacity expansion. 
2. If passed on to consumers by reducing product prices. Inflation falls. Demand rises. Ultimately sales volumes grow exponentially. 

For consumers:

1. More competitively priced products more savings more investable surplus or more consumption. 

For Govt:

Either of the above scenarios will lead to more tax revenues ultimately. 

And if you are thinking this is one time event by Govt than you are wrong this is just beginning of the never ending cycle. Expect corporate tax rate to 5% some day with this cycle. Expect GST flat rate at just 6% on all products. 

Conclusion: India a Economic Superpower well ahead of all world countries all put together. 

Now just think of what you are going to do with this extra chunks of money in your hands! Happy thinking!