By: Teri Bernstein
one view of tax reform from the right-of-center Young Turks
Proposed GOP tax reform promises increased global competitiveness of American companies. One of the supporting arguments of this is that the "U.S. has the highest corporate tax rate among developed countries." This is misleading, as the taxes paid for social services are not included, AND few corporations pay the full rate, according to Jonathan Traub of the Tax Policy Group at Deloitte Tax LLP in the article linked below. Also, there is no "quid pro quo" in the tax reform bill: corporations are not required to give any benefits to workers when they take advantage of reduced tax rates.
One logical outcome, according to Virginia Haufler (whose research at the University of Maryland, College Park, focuses on transnational corporations), could mean that corporations might “pay out big dividends to their shareholders instead of investing in new technology and upgrading their workforce skills.”
The big question is: WHAT IS THE UNDERLYING AIM OF DECREASING CORPORATE TAXES? And Individual Tax rates? Who benefits the most? Who is hurt, or benefits the least? What is the effect on future generations of increasing the deficit?
Source: "There's more to America's global competitiveness than the tax rate," by Kimberley Adams, Marketplace: American Public Media, December 5, 2017.
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.