Are corporations not paying their fair share of taxes?
So, given that, is it a really smart idea for John McCain to “Reduce The Federal Corporate Tax Rate To 25 Percent From 35 Percent”? Especially when many of them are already not even paying taxes? If it’s a matter of giving the corporations less incentive to go overseas, then maybe he should be giving tax breaks to consumers who buy American products and support American businesses? Or only give those breaks to corporations for staying in America and employing Americans? Shouldn’t there be strings attached to ensure that the corporations don’t just continue to take advantage of the laws set up to define them in the late 19th century?
I totally agree that some tax breaks – like the ones to companies in exchange for more investment in R&D- are a fine idea. I just don’t think that giving more money to corporations and expect them to use it to hire Americans, or pay more fair wages, works. Theoretically, thirty years ago, it was hypothesized that higher taxes reduced incentive to produce, which was the model for Reaganomics. The question is: how much of those tax breaks go into the skyrocketing executive salaries, instead of to the workers or to the businesses themselves, where they are supposed to go?