Klutzes think lower corporate taxes would build more factories. Why? There is less to write off klutzes. Higher corporate taxes gets more factories built.
Note people are paying for the material below. You can fool a lot of people in this world. Everyone was smarter in 1932.
This summer’s dizzying political developments make it hard to pinpoint what could happen to the corporate tax rate. Vice President Kamala Harris has endorsed increasing the levy, currently at 21%, to 28%, echoing what the Biden administration has proposed. Republican presidential nominee Donald Trump, meanwhile, recently told executives he wanted a 20% corporate tax rate and has floated a levy as low as 15%. Neither may get the respective rates if their party doesn’t gain full power of Congress.
What happens when the corporate tax rate increases?
Higher tax rates have the opposite effect on business growth and innovation. As such, proposals to raise the corporate tax rate not only jeopardize America’s global economic competitiveness but also deal a blow to American workers and families in the form of lower wages and higher prices.Sep 9, 2024
AI Overview
Whether higher US corporate taxes encourage a better economy is a complex issue with varying perspectives. Some argue that higher taxes can hinder investment and job growth, while others suggest they can lead to increased government revenue for public services and potentially boost overall economic stability.
Arguments Against Higher Corporate Taxes:
- Reduced Investment and Growth:
Some economists believe that higher corporate taxes reduce the profitability of businesses, leading to less investment, slower economic growth, and potentially fewer jobs.
- Global Competitiveness:
A higher corporate tax rate could make the US less attractive to businesses, potentially leading to companies relocating to countries with lower taxes, thus harming the US economy.
- Higher Prices for Consumers:
Some argue that higher corporate taxes are ultimately passed on to consumers in the form of higher prices for goods and services.
- Impact on Wages:
Some believe that higher corporate taxes could lead to lower wages for workers as businesses struggle to maintain profitability.
Arguments for Higher Corporate Taxes:
- Increased Government Revenue:
Higher corporate taxes can generate more revenue for the government, which can be used to fund essential public services like infrastructure, education, and social programs.
- Fairness and Inequality:
Some argue that higher corporate taxes are needed to ensure a fairer tax system and reduce income inequality, as corporations often have significant profits.
- Stimulating Demand:
Government spending funded by increased corporate tax revenue could stimulate demand in the economy, potentially leading to increased job creation and economic growth.
- Historical Evidence:
Some studies suggest that periods with higher corporate tax rates have seen stronger productivity and wage growth.
- Tax Efficiency:
Some argue that the corporate tax is becoming a more efficient way to raise revenue as the degree to which it distorts business decisions is declining.