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We cannot expect companies to voluntarily pay more taxes than the minimum, while there are legal loopholes at their disposal. The solution may mean reducing th
by freyir 9y ago
We cannot expect companies to voluntarily pay more taxes than the minimum, while there are legal loopholes at their disposal.
The solution may mean reducing the tax rate for all companies, closing the loopholes, and then enforcing the law.
But that would require elected government leaders to put their jobs on the line (lowering corporate taxes sounds bad to many voters since corporations have been vilified, even though it has bipartisan support among economists). So it’s unlikely to happen any time soon.
- sveme 9y agoI don't understand why you have to lower corporate tax rates first before closing all loop holes...
- ctchocula 9y agoCan you give a citation on "bipartisan support among economists"? All I have read seems to indicate economists are all in support for the other direction - that lowering corporate taxes at this moment is bad economics. [1] http://larrysummers.com/2017/10/22/one-last-time-on-who-benefits-from-corporate-tax-cuts/ http://larrysummers.com/2017/10/22/one-last-time-on-who-bene... [2] https://www.cbpp.org/research/federal-tax/corporate-rate-cuts-are-a-poor-way-to-help-the-economy-and-most-workers-and https://www.cbpp.org/research/federal-tax/corporate-rate-cut... [3] http://microeconomicinsights.org/benefits-corporate-tax-cuts-evidence-local-us-labour-markets/ http://microeconomicinsights.org/benefits-corporate-tax-cuts...
- freyir 9y agoI heard it only on an NPR podcast, where they claimed the measure had support from "economists of all stripes." And actually, the proposed policy was much more drastic: complete elimination of corporate taxes. But clearly there are arguments on both sides of the issue. [1] https://www.npr.org/sections/money/2012/07/19/157047211/six-policies-economists-love-and-politicians-hate https://www.npr.org/sections/money/2012/07/19/157047211/six-...