Posted on 06/30/2014 7:09:08 AM PDT by SeekAndFind
There’s a growing, bipartisan consensus that the berserk complexity of the U.S. tax code stymies job growth.
Our tax code has grown to be 25 times the length of "War and Peace,” notes Pete Sepp, executive vice president of the National Taxpayers Union.
Lowering corporate tax rates and simplifying the maniacally-convoluted tax code is slowly catching fire. S&P Capital IQ has provided an estimate on just what would happen to the U.S. economy if the effective corporate tax rate paid by S&P 500 companies dropped to Switzerland’s average, effective rate of 22.4% from our current 32.3%.
S&P Capital IQ says that slashing the corporate tax rate could create 10 million jobs or more over a five-year period. It would also improve the historically poor 62.8% labor participation rate, a level last seen in the recession era of 1978, back up to the 67% level the U.S. had before the financial crash and the same rate in the mid-to-late 1990s. During those periods, GDP growth averaged over 4% per year, more than double the rate it's been over the last 12 months.
Cutting the corporate rate would start to turn the U.S. into a tax haven and might bring home huge chunks of the $2 trillion in U.S. corporate cash parked overseas—the cheapest stimulus of all. S&P Capital IQ now says cutting the corporate rate would increase business investment, jobs and wages.
(Excerpt) Read more at foxbusiness.com ...
The “corporate tax” should be zero.
Its great that S&P wants taxes cut. It really is. But when Republicans tried to take a stand and cut spending, S&P started warning everyone that it created default risk and they might have to downgrade US debt. If S&P was serious about analyzing the economic health of the US, they would be pushing for significant spending cuts in addition to tax cuts.
Got a better idea. Reduce everybody’s income tax rate to zero. Implement the Fair Tax.
I think the tax code complexity for both businesses and persons is a serious issue. Always claimed corp tax rates are too high yet GE pays zero. Be nice if there is a cut, it is contingent on US jobs too.
Why I Can’t Be Both an Economist and a Liberal
http://www.newsmax.com/Peter-Morici/economist-liberal-Obama-minimum-wage/2014/06/30/id/579912/
The corporate income tax is effectively a hidden sales tax that ends up hitting the little guy the hardest.
I agree, there should be no corporate income taxes.
Make the US an international tax haven.
I can’t think of a better way to create tens of millions of jobs here in the USA.
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