Corporate Taxes
According to The Tax Foundation U.S. corporate tax rates, at 39.25%, are the second highest in the world. Here's the chart worth a thousand words. I'm about to offer a few dozen words anyway - just to try and explain why you should care.
Cost: The first reason is that any cost of doing business is passed on to you and me in the form of higher prices. Corporate taxes really do trickle down and are eventually absorbed by the consumer.
Just think how much cheaper that loaf of bread or jar of peanut butter would be if those companies weren't paying 39.25% in corporate taxes. It's not just the individual companies either. Those companies also hire other companies for things like accounting, shipping, advertising, maintanence... the list could continue. It adds up, and it all comes out of your wallet.
Jobs: The second reason you should care is that our corporate tax rates make it cheaper to incorporate in other countries. It also makes it expensive for foreign companies to come to America. Why would a business come here when they can set up shop in Mexico and Canada and still have access to our vast consumer base? We lose jobs to countries with lower tax rates.
The globalized economy has put the American worker in competition with countries that have much lower wage rates. No American I know is willing to lower their salary to the level of Mexico's or China's. Lowering corporate taxes would provide the incentive for businesses to come to America - and bring jobs with them.
Lower prices on everything, more jobs for everybody, sounds like just the kind of economic stimulus we need to me.
Capitalism Magazine: Who Pays Corporate Taxes?
Cost: The first reason is that any cost of doing business is passed on to you and me in the form of higher prices. Corporate taxes really do trickle down and are eventually absorbed by the consumer.
Just think how much cheaper that loaf of bread or jar of peanut butter would be if those companies weren't paying 39.25% in corporate taxes. It's not just the individual companies either. Those companies also hire other companies for things like accounting, shipping, advertising, maintanence... the list could continue. It adds up, and it all comes out of your wallet.
Jobs: The second reason you should care is that our corporate tax rates make it cheaper to incorporate in other countries. It also makes it expensive for foreign companies to come to America. Why would a business come here when they can set up shop in Mexico and Canada and still have access to our vast consumer base? We lose jobs to countries with lower tax rates.
The globalized economy has put the American worker in competition with countries that have much lower wage rates. No American I know is willing to lower their salary to the level of Mexico's or China's. Lowering corporate taxes would provide the incentive for businesses to come to America - and bring jobs with them.
Lower prices on everything, more jobs for everybody, sounds like just the kind of economic stimulus we need to me.
Capitalism Magazine: Who Pays Corporate Taxes?
posted by Bruce Kelly at
1:46 PM
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