Sqrl said:
mrstickball said:
richardhutnik said:
And if this money flows offshore, and causes people outside of the U.S to be employed instead of having U.S jobs created by government spending, how does that fix anything?
The idea that all you have to do is cut taxes, and cut regulation, and somehow it wil fix everything, presumes that progress ALWAYS happens, and what is needed will always show up just in time, because markets are destined to cause this to be so. The reality is that business doesn't exist to create jobs. Business exists to maximize profits, by providing goods and/or services that have superior appeal to the marketplace, and finding ways to cut costs, whether it involves laying off people or not.
There is also a case of needing to see where the minimum spending level by government should be. Would the economy be better off if America had no military and would become subject to easy invasions by a rival nation? Do poor nations in civil war generate wealth?
And yes, the fundamental issues of the economy need to be dealt with, beyond throwing money around. But saying cutting taxes will fix everything is a statement of faith, not a statement of reality. The last administration cut regulation, spending and everything. It failed to create sufficient jobs to keep up with population growth, yet businesses showed increased productivity.
|
...So how do you suggest you bring manufcaturing jobs back to America and/or fix the trade deficit?
I wasn't suggesting that lowering taxes is the be-all end-all. However, I am suggesting that since America has one of the highest corporate tax rates in the developed world, it causes problems for companies bringing jobs to America.
At any rate, really interested in hearing how you'd fix the trade deficit.
|
As far as I could find, we are second only to Japan in corporate tax rates.
|
More cutting of taxes? So, you cut taxes. Why would businesses hire Americans, and not people from places like India or China? Will businesses, out of the goodness of their hearts, suddenly hire Americans, and set up shop here?
The way corporations are taxed is that their expenses are taken out before taxes are figured. That means wages and other things, which is different than personal income tax (how does THAT compare to other nations?) where you take taxes out first and people live on the rest. If you suddenly cut corporate tax rates, do businesses suddenly go on hiring sprees because they like to spend money? Will the extra money motivate the corporation to work harder? If you are a business, because you get more money, you look for it to find ways to maximize profits, without raising costs, or raising them as little as possible. I believe other nations also use VAT (sales tax) as a way to raise income, so all corporate activities has a tax applied to it. As value gets added to goods and services, a tax is applied on that value that is added.
Someone please point out someone who argues that corporate income taxes should be cut to match other nations, while personal income tax be raised on to make up the difference, and there be a VAT tax added also. I don't see anyone doing that.
