Monday, May 22, 2017
Corporations Do NOT Need A Tax Cut
From Josh Bivins at the Economic Policy Institute:
t is often claimed that American corporate tax rates are much-higher than our international peers, and that this has harmed U.S. corporations’ competitiveness. However, these claims are both factually incorrect and economically meaningless. On the facts, while the statutory corporate tax rate in the United States is 35 percent, after loopholes and deductions, the effective tax rate that corporations pay is only 14 percent. On the economics, even if U.S. corporations werepaying higher taxes than their international peers, cutting these rates will do nothing to help the vast majority of American families, but will exacerbate inequality by boosting the post-tax incomes of owners and managers of corporations.