To increase corporate dependency on government...
While a company may maximize profits from playing games to defer or offshore profits when tax rates are 35%, it’s still likely inefficient from an economic perspective. That is, companies pay (in inefficiencies) to lower their taxes. When tax rates drop to 21%, they’re not willing to pay as much to avoid taxation, which means less game-playing.
But one man’s economic inefficiency is another man’s bread and butter. General Electric, the former poster-child for high profits and low federal corporate taxes, employed 1,000 tax experts. Their job wasn’t merely to fill out tax forms and find deductions in GE’s expenditures, but to direct GE’s business decisions.
At a lower corporate rate, companies will hire fewer tax experts. They’ll also hire fewer lobbyists to seek loopholes. They’ll also downsize the political action committees they use to bankroll the members of Congress who write the loopholes and carveouts.
JFK lowered taxes the the economy grew pre-Vietnam War (officially started after August 1964)...
The biggest difference in the corporate tax cuts in 1964, and now in 2017, is arguably what portion of all tax revenue comes from corporate taxes. In 1962, federal corporate tax receipts were $20.5 billion out of $99.7 billion. That was 20.5 percent. In 2015, total federal corporate tax receipts were $343.8 billion out of $3.25 trillion. That makes corporate taxes 10.6 percent of all federal tax revenue for that year. In other words, because the corporate tax rate has been steadily falling for decades, it would naturally make up a smaller portion of tax revenue.
So how was economic growth in 1963 and 1964? It was stellar by today's standards. In 1963, the economy grew by 4.1 percent, and in 1964, it grew by 5.8 percent. It was above 6 percent for the next two years, followed by a slight slacking off in 1967, at 2.7 percent. To be sure, not all of that was due to tax cuts.
But some of it was. Look at business-friendly Ireland, with its corporate rate of 12.5 percent, whose GDP grew by 26.8 percent in 2015. The United States had 2.5 percent GDP growth in the same year. But as the link mentions, it's easy to attract companies when you're the only one slashing taxes.
www.back2facts.com
I would argue corporate tax receipts are lower today as a result of decades (1964 - 2017) of overly complicated tax code that forced corporations to seek tax shelters off-shore. So democrats are going the wrong way. No way Biden's tax increase will grow the economy. What it does is grow government.
Thank you.
While a company may maximize profits from playing games to defer or offshore profits when tax rates are 35%, it’s still likely inefficient from an economic perspective. That is, companies pay (in inefficiencies) to lower their taxes. When tax rates drop to 21%, they’re not willing to pay as much to avoid taxation, which means less game-playing.
But one man’s economic inefficiency is another man’s bread and butter. General Electric, the former poster-child for high profits and low federal corporate taxes, employed 1,000 tax experts. Their job wasn’t merely to fill out tax forms and find deductions in GE’s expenditures, but to direct GE’s business decisions.
At a lower corporate rate, companies will hire fewer tax experts. They’ll also hire fewer lobbyists to seek loopholes. They’ll also downsize the political action committees they use to bankroll the members of Congress who write the loopholes and carveouts.
JFK lowered taxes the the economy grew pre-Vietnam War (officially started after August 1964)...
The biggest difference in the corporate tax cuts in 1964, and now in 2017, is arguably what portion of all tax revenue comes from corporate taxes. In 1962, federal corporate tax receipts were $20.5 billion out of $99.7 billion. That was 20.5 percent. In 2015, total federal corporate tax receipts were $343.8 billion out of $3.25 trillion. That makes corporate taxes 10.6 percent of all federal tax revenue for that year. In other words, because the corporate tax rate has been steadily falling for decades, it would naturally make up a smaller portion of tax revenue.
So how was economic growth in 1963 and 1964? It was stellar by today's standards. In 1963, the economy grew by 4.1 percent, and in 1964, it grew by 5.8 percent. It was above 6 percent for the next two years, followed by a slight slacking off in 1967, at 2.7 percent. To be sure, not all of that was due to tax cuts.
But some of it was. Look at business-friendly Ireland, with its corporate rate of 12.5 percent, whose GDP grew by 26.8 percent in 2015. The United States had 2.5 percent GDP growth in the same year. But as the link mentions, it's easy to attract companies when you're the only one slashing taxes.
What happened when JFK lowered taxes? — Back to Facts
By TATIANA PROPHET Conservatives generally seize on the notion that John F. Kennedy cut taxes. Liberals tend to scoff at this idea, stating why the situation was different. Let’s examine the facts, looking for balance. It was 1960, and the country was in the middle of a recession caused mainly b
www.back2facts.com
I would argue corporate tax receipts are lower today as a result of decades (1964 - 2017) of overly complicated tax code that forced corporations to seek tax shelters off-shore. So democrats are going the wrong way. No way Biden's tax increase will grow the economy. What it does is grow government.
Thank you.
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