Paul Krugman On Grover Norquist
Norquist Compares The Corporate Tax Rate To Torture, Claims
Cutting It Will ‘Stop Torturing Corporations’»
Earlier this month, National Journal’s John Maggs sat down with anti-tax crusader Grover Norquist to discuss the future of conservatism and the economy. Asked by Maggs about the tax cut proposals in President-elect Obama’s stimulus plan, Norquist said there was only one “real tax cut” in the plan, but that there are “two other tax cuts that the Democrats could do when they get stuck.”
Norquist then suggested expensing for all businesses and cutting the corporate rate, which he said in its current form is comparable to torture:
NORQUIST: The other tax cut you could do is cutting the corporate rate. The U.S. corporate rate is 35 percent; the European rate is 25 percent. Obama is a more international guy, so we should be close to the European average. We’ll stop torturing people, we’ll stop torturing corporations, and that will make us more like Europe.
This isn’t the first time Norquist has made an outlandish and offensive comparison. In 2003, Norquist compared the estate tax to the Holocaust, saying that they share the same “morality.” But not only is Norquist’s comparison contemptible, considering the very real moral and human cost of Bush’s torture policies, his idea of a corporate tax rate cut would be ineffective stimulus.
As the Center for American Progress’ Will Straw has pointed out, permanent corporate tax cuts have a poor track record for providing stimulus:
The track record for such steps is poor in general, but they are particularly ill-suited for a recessionary period. After all, the reason that businesses and individuals are not investing at the moment has little to do with the taxes they may pay in the future and everything to do with a fear of losing money because there is no demand in the economy, asset prices are highly volatile, and credit is hard to come by.
Citizens for Tax Justice has found that “every dollar lost from cutting the corporate income tax would increase real GDP by just 30 cents,” which is a stimulative effect that would hardly justify slashing the corporate rate.
Comments 121 SharePrint
Sort Comments By: Top Rated | Date
120 Responses to “Norquist Compares The Corporate Tax Rate To Torture, Claims Cutting It Will ‘Stop Torturing Corporations’”Buckie Boy Says:
--------------------------------------------------------------------------------
Don’t most corporations pay NO TAXES at all?
Just asking.
January 16th, 2009 at 1:49 pm
--------------------------------------------------------------------------------
Dr. Hussein Matt Says:
--------------------------------------------------------------------------------
As a typical reich-winger, he cares more about corporations than Americans.
January 16th, 2009 at 1:50 pm
--------------------------------------------------------------------------------
Uosdwis Says:
--------------------------------------------------------------------------------
He’s a hybrid of a one-trick-pony and a squawking parrot.
January 16th, 2009 at 1:53 pm
--------------------------------------------------------------------------------
Zooey Says:
--------------------------------------------------------------------------------
Republicans are socially unacceptable.
January 16th, 2009 at 1:57 pm
--------------------------------------------------------------------------------
belac Says:
--------------------------------------------------------------------------------
January 16th, 2009 at 1:59 pm
--------------------------------------------------------------------------------
osage Says:
--------------------------------------------------------------------------------
Norquist is a class warrior who defends the rich at the expense of the poor regardless of the common good. Despite the fact that his economic theories have failed the majority of America’s citizens, he still advocates the continuation of their exploitation. Thankfully, people like him are going the way of the dodo. I imagine the dinosaurs struggled mightily to the very end of their extinction too.
January 16th, 2009 at 1:59 pm
--------------------------------------------------------------------------------
belac Says:
--------------------------------------------------------------------------------
Won’t someone please think of the corporations?
January 16th, 2009 at 2:00 pm
--------------------------------------------------------------------------------
mary Says:
--------------------------------------------------------------------------------
‘About two-thirds of U.S. companies and foreign firms doing business in this country paid no federal income taxes from 1998 to 2005, according to a study by the Government Accountability Office’
snip
‘To be sure, many of the nonpayers were small or new companies that probably made no money. But the report said that about a quarter of large corporations - ones that had more than $250 million in assets or $50 million in gross receipts - paid no taxes. In 2005, for instance, 3,565 large U.S. companies and 998 large foreign-owned companies operating here did not pay any income taxes.’
sfgate.com cgi-bin/ article.cgi?f=/ c/ a/ 2008/ 08/ 12/ MNC4129OFL.DTL
January 16th, 2009 at 2:02 pm
--------------------------------------------------------------------------------
ElBruce Says:
--------------------------------------------------------------------------------
The corporate rate is torture, estate taxes are the Holocaust… So I guess capital gains taxes are exactly like raping babies?
I bet it would be possible to torture Norquist into saying taxes should be higher.
What the hell kind of job is “crusader?” Who’s signing this guy’s paycheck?
.
The U.S. corporate rate is 35 percent; the European rate is 25 percent. Obama is a more international guy, so we should be close to the European average.
How come Europe is full of ebil Socialist states with extremely high tax rates when they want it to be, and then it’s 10% less than ours and should be emulated when they want it to be?
January 16th, 2009 at 2:02 pm
--------------------------------------------------------------------------------
mary Says:
--------------------------------------------------------------------------------
‘But corporations can do a lot of creative accounting to “lose” money - and sometimes that can cross the line.’
One such practice identified by the report is “transfer pricing abuse.”‘
snip
‘”A company will incorporate offshore where there are no taxes,” he said. “That (parent) company charges the U.S. company lots of money for things like the trademark for the company logo. The U.S. company says, ‘I made $50 million, but my stupid parent company charged me $50 million for the logo.’ The U.S. company gets to deduct the royalty fees as an expense and move profits to the parent company offshore in a tax-free haven.”‘
from the same link as #8
January 16th, 2009 at 2:03 pm
--------------------------------------------------------------------------------
Another Joe Says:
--------------------------------------------------------------------------------
No one benefits more from government corporations he is speaking of. They get free infrastructure and a system to protect them.
The costs go on the general public and the income all goes into their books as revenue.
Crony capitalists crying “torture” is just more propaganda.
January 16th, 2009 at 2:03 pm
--------------------------------------------------------------------------------
Hoodathunk Says:
--------------------------------------------------------------------------------
Mr Norquist is living proof that shaving a dog’s butt and teaching it to walk on its front paws can work.
January 16th, 2009 at 2:04 pm
--------------------------------------------------------------------------------
Another Joe Says:
--------------------------------------------------------------------------------
Guess paying a local sales tax is like killing more than a million innocent woman, children, and men in Iraq too, right norquist?
January 16th, 2009 at 2:05 pm
--------------------------------------------------------------------------------
Zooey Says:
--------------------------------------------------------------------------------
Hoodathunk Says:
Mr Norquist is living proof that shaving a dog’s butt and teaching it to walk on its front paws can work.
January 16th, 2009 at 2:04 pm
Snorting tea up my nose is painful. Thanks for that….
Ow.
January 16th, 2009 at 2:06 pm
--------------------------------------------------------------------------------
stewarjt Says:
--------------------------------------------------------------------------------
Yes. That was what went so wrong during the last eight years of hell: The corporate tax rate was too high!
What an ASS!!!
January 16th, 2009 at 2:10 pm
--------------------------------------------------------------------------------
Hoodathunk Says:
--------------------------------------------------------------------------------
Sorry, Zooey
January 16th, 2009 at 2:10 pm
--------------------------------------------------------------------------------
glezzery Says:
--------------------------------------------------------------------------------
“Zimzone Says:
I’ll help drown him in his own bathtub, which would be a fitting end for a corporate ass-sucker like Grover.
Is he really from the Muppet Show?”
ProgressThink?
January 16th, 2009 at 2:14 pm
--------------------------------------------------------------------------------
LiberalVoter Says:
--------------------------------------------------------------------------------
There is something seriously wrong in Norquist’s brain. How can anyone put paying corporate taxes on the same level as torture? If Mr. Norquist has trouble understanding the difference between the two maybe he should be allowed to experience both and then report back to us.
January 16th, 2009 at 2:16 pm
--------------------------------------------------------------------------------
dbadass Says:
--------------------------------------------------------------------------------
I never considered a career as a professional tax whiner.
January 16th, 2009 at 2:17 pm
-------------------------------------------------------------------------------- |
