Ok this needs to be said.
Corporate tax cuts, as a rule, don’t create jobs, in fact, they actually reduce the incentives for companies to spend money.
The only thing that increases corporate spending is demand, and the only thing that increases demand is consumers with more money in their pockets.
You want a tax cut that helps?
Give it to the people who are going to take it straight to Walmart or Target and spend it.
When my dad ran his business back in the 80’s and 90’s, I remember the mad dash to buy upgrades, hire people, and spend money as the year came to a close to ensure that he didn’t pay the high taxes on the profits he made. For example, Christmas bonuses are a great tool for both increasing loyalty and moving money out of the “profit” column when it comes to tax time.
If you’re a business, do you want to pay 35% in income taxes on your profits? Or do you want to spend 100% of the money and get something you’re actually going to use and need?
Our economy only works when the money is changing hands. When people start spending…well that’s what happened in 2000 and again in 2008 and we all see how that ended…