Reply #54: Obama also bought the neoliberal corporate tax nonsense [View All]

[soryang]

...hook, line, and sinker. American corporate taxes are not too high. Going to lower corporate taxes will reduce employment not increase it, it will also reduce capital spending. If corporate taxes do not bite there is no incentive to invest in capital or employees. If taxes are low you don't need to.


This is a major structural reason why American manufacturing and industry suffer while financial speculation, market manipulation, hoarding, and crony capitalism on government revenues skyrockets at their expense. You don't need to make real capital investments to make a profit in this country because you can just speculate and lobby congress for profits. Taxes are so nonexistent on the finance, insurance, and real estate sector that they grew like a cancer choking everything else out.

On the other hand, I don't believe that the corner family restaurant should pay the same taxes as a national chain like Denny's or MacDonalds. Therefore, if corporate tax changes are needed, the reductions and incentives should be increased for small corporations less than a certain capitalization and increased on the corporate giants.