Study Shows Benefit of Lower Corporate Taxes

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Raise taxes on big business! That’s the cry of democratic lawmakers. Democrats argue that keeping the corporate tax rate high will help increase income for workers. While it’s true that wages have basically remained stagnant over the last decade, and the cost of living has gone up, increasing corporate taxes is not the answer to solve this problem.

According to a study by Kevin Hassett and Aparna Matur there is a link between corporate taxes and employee wages. That study revealed that the common belief that customers end up paying for corporate tax increases is incorrect. In reality when corporate taxes go up, it’s the workers and not the corporations or the customers that end up paying for the increased taxes.

However, despite the evidence to the contrary, many politicians continue to scream for higher taxes on big corporations, claiming that this will help boost wages and increase employees’ income. Many in this camp also want to punish any company that moves overseas or that keeps more income in offshore subsidiaries in effort to avoid these high taxes.

Unfortunately, this kind of thinking will only serve to hurt the average American instead of helping. According to Hassett and Matur “workers become more productive when they acquire better skills or have better tools. Lower corporate rates create the right incentives for firms to give workers better tools, and more productive workers earn higher wages.”

http://www.iwf.org/blog/2801126/Studies:-Lower-Corporate-Taxes-=-Higher-Wages

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2 comments on “Study Shows Benefit of Lower Corporate Taxes
  1. Tony Pater says:

    Corporate taxes just increases prices to the consumer!!!
    We should have very low corporate taxes but have a vat tax which should be used for deficit reduction and would increase the value of the dollar and help our corporations buy foreign companies more readily.

  2. Kai says:

    as a failed and bankrupted successful previously businessman , I can’t agree moore this article. I believe Trump, at least here, is on the right track if not also else where! May the Lord lead and continue to anoint him, even unbeknown to him and others(especially the biased and blind, having eyes but do not see, ears but fo not hear, minds but cannot think!). Shalom!

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