Re: "Corporations should not pay tax, they are the engines of economic growth."
Sounds good in theory; falls flat in real life. Let's look at a few numbers:
From 1990 to 2000, inflation rose at a rate of 32%.
From 1990 to 2000, worker pay rose 37%.
From 1990 to 2000, corporate profits rose by an average of 114%.
From 1990 to 2000, the S&P 500 index rose 300%.
And (drum roll please), from 1990 to 2000, CEO pay rose an average of 571%.
Therefore, if we allowed Big Business to keep more money instead of passing it on to Uncle Sam, which of these two scenarios would play out? (1) Workers would be paid more and provide a boost to the economy. (2) CEOs would be paid more and provide a boost to the local Cadillac dealer.
The answer is (2), based on what we saw in the '90s.
Also, if we taxed corporations less, we'd have to tax America's middle class more. So Joe Worker would lose twice. He'd continue to be squeezed by his employer, and he'd get squeezed even more by Uncle Sam. |
