Among the wealthiest countries in the world, the United States has the highest level of corporate tax rates. See Chris Edwards, U.S. Corporate Tax Rate the Highest, CATO Institute (Dec. 16, 2010). The chart to the right shows our number one ranking status.
The unemployment here is also sky high, despite the productivity of the American worker. Is there a connection?
Corporate tax rates are popular with politicians because they facially appear to increase revenue without taxing voters. However, they are more like a stealth tax on the people. Corporations are profit motivated and any taxes are avoided or passed along to the the customers of the corporation. Thus, to the extent a corporation sells products or services, the tax rates are baked into the prices people pay. In this way, corporate taxes are passed along to the people.
Corporations also are rich enough to hire very smart accountants and tax lawyers. These advisers tell the corporation the best way to avoid the United States tax rates . . . even if the corporations operate here. The result is that capital is diverted away from the United States to overseas where the rates are lower and the confiscatory tax rates here are avoided.
The incentive not to bring capital to the United States has an indirect impact on unemployment. The corporation looks for alternative nations in which to invest its capital. The United States, because of our productive workers, huge markets, security, and way of life, may be otherwise the best place to invest in a new plant or project. However, when taxes and cost-increasing regulations are taken into consideration, the corporation chooses to build its plant elsewhere. With education levels increasing inside other countries, the productivity there is approaching ours.
Japan, according to the article linked above, has just decreased its rates by five percent, giving us the status as having the highest rates of any economic power. That rate must be cut to bring unemployment down to a more reasonable figure. It is urgent that the cut occur soon too because the longer the unemployment rates--some say as high as 20 percent by real data--the greater will grow the government deficit.
The treasury bubble is the last bubble that we will experience before economic collapse. We need to reduce that bubble by increasing revenue for the federal government. They will only happen if our economy starts to grow soon.
The unemployment here is also sky high, despite the productivity of the American worker. Is there a connection?
Corporate tax rates are popular with politicians because they facially appear to increase revenue without taxing voters. However, they are more like a stealth tax on the people. Corporations are profit motivated and any taxes are avoided or passed along to the the customers of the corporation. Thus, to the extent a corporation sells products or services, the tax rates are baked into the prices people pay. In this way, corporate taxes are passed along to the people.
Corporations also are rich enough to hire very smart accountants and tax lawyers. These advisers tell the corporation the best way to avoid the United States tax rates . . . even if the corporations operate here. The result is that capital is diverted away from the United States to overseas where the rates are lower and the confiscatory tax rates here are avoided.
The incentive not to bring capital to the United States has an indirect impact on unemployment. The corporation looks for alternative nations in which to invest its capital. The United States, because of our productive workers, huge markets, security, and way of life, may be otherwise the best place to invest in a new plant or project. However, when taxes and cost-increasing regulations are taken into consideration, the corporation chooses to build its plant elsewhere. With education levels increasing inside other countries, the productivity there is approaching ours.
Japan, according to the article linked above, has just decreased its rates by five percent, giving us the status as having the highest rates of any economic power. That rate must be cut to bring unemployment down to a more reasonable figure. It is urgent that the cut occur soon too because the longer the unemployment rates--some say as high as 20 percent by real data--the greater will grow the government deficit.
The treasury bubble is the last bubble that we will experience before economic collapse. We need to reduce that bubble by increasing revenue for the federal government. They will only happen if our economy starts to grow soon.
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