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According to certain theoretical frameworks... Empirically though there generally isn't any causal relationship demonstrated between corporate tax rates and wag
by stephen_g 9y ago
According to certain theoretical frameworks... Empirically though there generally isn't any causal relationship demonstrated between corporate tax rates and wages, economic growth, or unemployment in most statistical data.
This is a really big debate in Australia at the moment, a lobby group made up of large corporates (the Business Council of Australia) is campaigning heavily for a tax cut given the recent Trump cuts. So there's been a lot of examination of this data and the best they have is intuitive arguments ("of course if there's more profits you'll have more investment and employment") but they admitted in a Senate enquiry just yesterday that they didn't actually have any demonstrable statistical evidence that tax cuts have caused employment growth, wage growth or increased investment in any developed economy.