billbays.com
  • Home
  • Blog
  • Video Archives
  • Contact

30 Reasons

6/12/2012

0 Comments

 
30 U.S. Senators, both new and old, are trying to explore ways to extricate ourselves from the current economic malaise and debt. These 30 Senators, headed up by Sen. Alexander of Tennessee and Sen. Warner of Virginia agree, as reported, on reducing corporate taxes. Apparently, this is an informal gathering of llke-minded Senators. Other solutions, I assume, are  still open for debate and resolution.

  What is the rationale for cutting corporate taxes ?  American corporations, particularly the formidable ones, are sitting on cash with good balance sheets. At the same time, the corporate world is highly concentrated, and becoming more concentrated each day. We are less and less of a free market economy. Corporate CFO’s have become like investment bankers.   Would not corporate tax relief accelerate this behavior and resistance to risk in the board rooms ?

  High marginal corporate rate is 35%, and accompanied by numerous tax gratuities, usually referred to as loopholes. Historically, corporate tax in America has been higher, with a higher share of GDP. Currently, it is about 1.3 % of GDP and tax revenues on corporations is near 9 %. In the 1950’s corporate tax was 6 % of GDP. But, you don’t have to go back to the 1950’s for comparison. Just go to the 1980’s to get a historical perspective of corporate tax rates.

  When you compare our corporate tax rate with all the deductions, credits, and deferrals; it brings our top-heavy economy into focus.

  No doubt, some of these Senators thinking has been polluted by two fantastic myths : (1) that tax cuts will produce commensurate economic growth and (2) growth alone will solve our debt condition.

  We do know, and, these Senators know quite well, that wealth is polarizing every day. I hope we don’t have to remind the Senators what  this will ultimately mean for America.

  Maybe these 30 Senators that want to cut corporate taxes are 30 reasons we are in the mess we are in.

0 Comments



Leave a Reply.

    Author

    Bill Bays

    Archives

    April 2016
    August 2015
    June 2015
    April 2015
    February 2015
    January 2015
    December 2014
    November 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010
    December 2009
    November 2009
    October 2009
    September 2009
    August 2009
    July 2009
    June 2009
    May 2009
    April 2009
    March 2009
    February 2009
    January 2009
    December 2008
    November 2008
    October 2008
    September 2008
    August 2008
    July 2008
    June 2008

    Categories

    All

    RSS Feed

Website by Creative Cat
  • Home
  • Blog
  • Video Archives
  • Contact