Some economists have pushed to eliminate the corporate tax altogether, replacing it with a tax on individual shareholders’ personal income, dividends and capital gains. Those in the too-little camp maintain that many corporations already pay far less than their fair share. They point out there is little historical evidence that high rates have led to job loss or a sluggish economy. “The idea that lowering the corporate tax rate will lead to more investment is fundamentally wrong,” said Joseph Stiglitz. The Senators and Congressional representatives that we elect to write and enact laws seem to only want to change corporate laws when its in the benefit for the corporations themselves. The cheap argument of economics that constantly gets thrown around, claiming that if corporate taxes and fees are reduced, corporations having more monetary means to create more jobs and employ more people, evidently has not been very effective when one looks at our current economic growth here in the US. Im not neglecting that lower corporate taxes (should) would provide incentives for them not to incorporate their business outside the US, but it hasnt been shown to be a current trend among corporate businesses as they probably still find ways to dodge taxes. The loopholes that corporations are given allow for them to dodge several of the taxes that they would be paying by participating in foreign trades and markets. Corporate inversions, as theyre called, only reshape and burden our current economic landscape by putting the money that corporations would pay in taxes back into their pockets; the money isnt being invested back into the economy, which completely contradicts what most of the legislative representatives keep on insisting will occur by insisting that these corporations need less corporate taxes. It only makes sense that corporations get taxed on their earned revenues the same, whether theyre incorporated here in the US or elsewhere internationally.
Posted on: Tue, 12 Aug 2014 22:15:26 +0000
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