Economic Stimulus Idea: Cut Corporate Taxes
A recent study by the American Council for Capital Formation highlights what the US can do for real economic stimulus versus handing out checks that came as a result of us borrowing more money. ACCF’s study showed the adverse effect of corporate taxes on investment. This is significant for the US because has the second highest corporate tax burden in the world, and yet we wonder why jobs are going overseas (hint: it’s not just because the labor is cheaper).
If we really want to turn the economy around, we have to stop punishing businesses for being profitable and allow them to keep their earnings, which they in turn reinvest in growing their businesses and creating new jobs.
Link to the study findings: http://accf.org/publications/newsletter/volumes/jan-feb2008.html#study
Reach Upward said,
May 21, 2008 @ 6:09 pm
This is difficult to do because the Left has convinced many people that corporations are evil and that rich corporations should pay lots of taxes. Never mind the fact that these taxes are ultimately passed through to individual consumers in the form of higher prices and that the taxes stifle inovation consumers might otherwise enjoy.
I know plenty of people that still want to stick it to “rich” corporations, even after the negative impacts of doing so are demonstrated.