Question of the day

[veritas]

Does a low tax rate on corporations create a growing economy and thus increase tax revenue to the state?

[Joe Btfsplk]

Answer of the day

You could find eminent economists who would argue either way. I would think lower taxes would mean corporations would have more money to either invest and expand or they would pay bigger dividends which would boost the economy. Taxes do not help the economy, but they are a necessary evil since the government needs money to operate.

It could also be argued that high taxes create more government contracts and help grow the economy. However, some government schemes have no real benefit to anyone other than the people who profit from the government work. So, it could be argued that both govt spending and corporate spending have an economic impact, but unless it is spent on providing goods and services that people want and need, it is of limited value.

[jimmcg]

I thought everone believed in "supply side economics."

[Joe Btfsplk]

Supply side economics

I thought everone believed in "supply side economics."

It's hard to believe in anything that you can't see, feel or smell.

[veritas]

Which european country went from one of the poorest in Europe to one of the the highest gross domestic product per capita income in the world? Hint- Corporate tax rate was reduced to 12.5.% in the 90s. Growth period starting in the 90's.

[jainen]

another possibility

There is another possibility, which we have seen over and over again. The corporations may not use their tax savings for expansion OR dividends. Often they use it for mergers and acquisitions, or to fund a move overseas. In those all too common cases, the economy is damaged by tax cuts, not helped.

[veritas]

They are moving overseas to the country I am speaking of because?

[Joe Btfsplk]

They are moving overseas to the country I am speaking of because?

They are moving primarily for cheap labor. In some cases they move or expand into a country in order to increase their business in that country. As far as I am concerned, I would rather see jobs outsourced than to see them filled in this country by illegal immigrants. Too bad we can't outsource our lawn mowing and farming instead of hiring illegals.

[veritas]

I understand that Microsoft is moving some operations to this country because it has a 12.5% corporate tax. As an addded bonus this country has a highly skilled workforce. Another hint-It is know as the "????? Tiger".

[Black Bart]

What country

Scotland?????????

[veritas]

Where Irish eyes are smiling

The growth in this country has been spectacular.