I stand by my original statement.
There are many ways to generate revenue through taxes, the issue is who is affected and importantly what behaviour does it affect and how.
Corproate taxes affect people inside the united states, but they are different from a host of other taxes in that they also serve as a tax on money leaving the country and going to foreign investors.
Thus they have an effect on foreign investment.
Too little in corporate taxes and you can be "exploited" and could get something akin to a trade deficit where more dollars of corporate profit are leaving the country to foriegn investors than are coming into the country to US nationals that have invested in foreign countries.
Too much however and you drive away foriegn investment at the least, and quite possibly one drives away jobs as well, though that would be dependent on a host of other factors.
Since unemployment seems to be considered to be a contender for the greatest problem in the united states at the moment, a high corporate tax rate would seem bad.
A very high corporate tax rate combined with a host of loopholes via croney capitalism is just all around a bad situation.
Last edited by Someone; Mar 06 2012 at 02:21 AM.
AGW – absence of doubt, intolerance of debate, appeal to authority, desire to convince others of the ideological “truth”, and a willingness to punish those that don’t concur. They need to look in the mirror and understand their own motivated reasoning.