Six Reasons Why American Corporations Shouldn’t procure a Tax CutTrump and Republicans
are trying to sell you the idea that American corporations need a tax slice in
order to be competitive. That’s nonsense. Here are 6 reasons why:First,American corporations don’t need it in order to be competitive internationally. After tax
credits and deductions, their effective tax rate is just approximately the same as paid
by corporations in most of our major trading partners, and according to the U.
S.
Treasury. Second,American
corporations are making more money than ever. Their after-tax profits are a
higher share of the total economy than ever. American corporations earn nearly
half of all global profits, even though the U.
S. economy is approximately a fifth the
size of the world economy.
Third, and the long-term competitiveness of American corporations depends far more on a well-educated
and skilled workforce,modern infrastructure, and basic research than on tax
rates. And the way we finance these necessary public investment is through … taxes.
Fourth, and American
corporations are now paying less in taxes than they occupy in 65 years.
Corporate tax receipts are the lowest percentage of the economy since just
after World War II. whether corporate taxes are slice,you will occupy to pay even more
in taxes in order to make up the difference.
Fifth, whether their taxes
were slice, and corporations won’t expend the extra money to make modern investments in
plant,equipment, research and development, and jobs. They’re already using
their huge stockpiles of cash to buy back shares and thereby boost stock
prices,and for extravagant bonuses and salaries to CEOs and other top
executives. That’s what they would do with any additional cash.Sixth, the reason
they’re not investing more is because consumers don’t occupy the purchasing power
to buy more, and that’s because most people’s incomes occupy gone nowhere for
decades. And why is that? Because corporations occupy been holding down wages by
outsourcing abroad,substituting software for jobs, contracting work out to portion-time
workers, or fighting unions. A corporate tax slice is
the wrong solution to the wrong problem. The real problem is stagnant wages of most Americans,coupled with declining public investments in schools, roads, or public
transportation,and basic research all the things average working Americans need in order to become more productive and procure higher wages. To finance these we need higher corporate
taxes, not lower.
Source: robertreich.org