Eliminating corporation taxes would spur the Americna economy. It would also boost domestic investment, which in turn would generate more jobs and higher wages and incomes. Without burdensome taxes, businesses would flock to the United States and pour more money into the economy. Today, U.S. politicians drive companies offshore, then demonize them for fleeing political oppression. Without politicians siphoning off their profits, businesses would invest more in building up and expanding their productive capibilities, creating more and better jobs. And consider the resources saved in compliance costs. Today, corporations must navigate the conflicting and inherently ambiguous state tax laws, then hire lobbyists to try to protect themselves from federal tax abuse. Through so-called "loopholes," different businesses pay different net tax rates. The result is massive productive potential squandered appeasing and dodging politicians and tax bureaucrats. I believe America pays the higest corporation taxes in the industrial world at 35%. Imagine the growth of our economy if we were to take that tax rate down to zero. http://www.gjfreepress.com/article/20110805/COLUMNISTS/110809986
Corporate taxes are already at historic lows and yet corporations are not creating jobs. What makes you think lowering them more will make them do it?
I'm not so sure about eliminating corporate taxes. I thnik the main reasoning behind corporate taxes is to avoid the existence of an unlimited tax shelter that would be fairly easy to use. I think you can get very high bipartisan support, however, for reducing the corporate tax rate in exchange for simplification of the code. I think most Democrats and Republicans support that (well, Republicans will support it as long as Obama doesn't suggest it). I don't think that that would create jobs right now though. That assumes the reason corporations is not hiring is that they simply lack the capital to spend... I have my doubts on that. It's largely an issue of consumer demand (why invest in more human capital if it won't contribute to profit?). Also there are some structural issues: workplaces are more efficient and can be more productive with fewer workers, there's the whole "worker placement" thing that companies use as an excuse (to the extent it's true, it really indicates that firms feel entitled to having experienced and skilled workers without investing in the creation of experience or skill)... neither of which would likely be fixed by decreasing corporate taxes.
Are the costs of doing business in America as competitive as the costs were when the corporate tax rates were at historic highs? Business is getting hit hard by raw material because of exchange rates, they can't compete with foreign labor markets except for specialty and luxury items, and regulation is far more burdensome than the vast majority of their global competitors. Seems taxes and regulations are atop the list of potential VA changes.
That is the result of our horrible policy of having free trade with countries that cheat. We need to tariff all goods coming from foreign nations that violate standard workplace and environmental protection conventions.
I somewhat agree, but I think that a reduction in corporate taxes would result in a decrease in prices. This decrease in prices would spur higher demand. Not just new customers entering the market, but also acquisition of current customers through competitiveness that gains market share. Exchange rates have already begun to force localization of products with expensive logistical rates. Reducing corporate tax would most likely provide the edge to US suppliers for many other items as well. All of these positives create jobs.
International tariff wars benefit no one especially the US consumer. How does forcing inferior products and increased prices help out anyone?
If I were a corporation I ask why I should pay "you" workers more, above your pay grade, or hire more people who I would have to pay another salary and payroll tax on? If "you" are skilled workers I'm already jumping through hoops to pay you extra salary, bonuses, and perks to keep you working at my corp. From a corporation's point of view the money is coming in from the investors' loans to us and "I" as a corporation need all the money I can get to pay back all those investors, plus whatever dividends I offer, not to mention company expenses. Now that "I" and my corporation are making more money (because of the tax elimination), I'm drawing in more investors who take an interest in me because of the bad economy (and I'm presumably doing well), plus their expenses, and now I need to worry even more about money. -- I would want to hire a small, elite team of skilled workers and export any other jobs to those loyal low-wage third-world workers to cut my expenses even more.
Also, If "my" corporation is outside the US why would "I" come to the USA with my manufacturing units when it costs so much to live here in the USA, and so I must pay workers a higher wage than say in India or Haiti where I can pay less, because the cost of living is less, and my workers can still live a middle-class lifestyle on the lower wage?
How does driving all of our businesses out of our country because we have free trade with other countries allow slave labor, unsafe work conditions, and have no environmental protections allowing them to produce that artificially deflated cost help out anyone?
