My example is intentionally simplified, and doesn't consider either a high or low personal tax rate. It also doesn't consider tax avoidance because, frankly, le

My example is intentionally simplified, and doesn't consider either a high or low personal tax rate. It also doesn't consider tax avoidance because, frankly, legislation that enables tax avoidance is equivalent to lowering effective taxes. Statutory vs Effective tax rates are what actually count in terms of the long term choices companies make and the outcomes for the rest of us. In my example, imagine that there are absolutely no tax dodges whatsoever. The statutory rate is the effective rate. If it were impossible to pay accountants to dodge taxes, i.e. the middle class income tax bracket, then my example holds. Note for the casual reader: please be aware that there is a HUGE difference between statutory and effective tax rates. Politicians and Corporations hope you don't catch on. https://www.npr.org/2017/08/07/541797699/fact-check-does-the-u-s-have-the-highest-corporate-tax-rate-in-the-world https://www.npr.org/2017/08/07/541797699/fact-check-does-the...