The debate on what to do about the corporate tax is very much a bipartisan issue. Therefore both sides of the debate will have come to a compromise on the issue. The conservative side of the debate would like to make the tax policy as attractive as possible to businesses that allow American companies to compete internationally. The liberal side of the debate wants to allow American Corporations to be competitive in the global market as well, but they also want higher taxes and more regulations on corporations to assists government spending that help the people. The conflict arises because one side believes little government regulation of business is necessary for a health economy. While the other side feels that more regulation of business that protects the America people is necessary even at the cost of limiting economic growth.
I inherently believe that a more conservative view of less government control in business in the solution to the debate over corporate tax. Although liberal efforts in closing tax loopholes, that favor foreign businesses operations, to bring home jobs is a good for the economy.http://www.washingtonpost.com/wp-dyn/content/article/2009/05/04/AR2009050403256.html The problem, which I have mentioned throughout my blog, is the current corporate tax rate is too high for U.S. business to operate domestically and still compete with the rest of the world. If both sides could agree to lower the corporate tax, American Companies would able be to thrive domestically in global market. http://www.heritage.org/research/Taxes/wm1891.cfm Conservatives would be satisfied as U.S. corporations remain competitive. While at the same time tax revenues, currently sheltered in foreign tax havens, would be reaped by the government for spending which would satisfy liberals.http://www.businessweek.com/investor/content/jul2009/pi20090716_980847.htm
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I am able to comprehend that you are in favor of a conservative approach to business. With this said, I believe that it will be difficult for Liberal theories and Conservative to be combined together for a successful corporate tax system. Do you think that any arguments that the opposition makes are important or may be correct? I also think that is is interesting that you consider the U.S. to be a terrible place for companies to thrive. It is a fact the the U.S. corporate tax rate if the second highest in the world, but if this is a bad thing, why are 3 of the 5 largest companies in the world based out of the United States? I also find it interesting that the top two richest people in the world, along with the fourth richest, are American, and Bill Gates made his wealth through Microsoft, a U.S. corporation. What is your perception of these statements and what they say about the argument that high corporate tax is bad for America?
ReplyDeletehttp://www.forbes.com/2009/03/11/worlds-richest-people-billionaires-2009-billionaires_land.html
http://money.cnn.com/magazines/fortune/global500/2009/
Your post makes me think of some questions. You explained what would happen if the conservative side won, which would be the allowance of thriving in the global market. However, what else would be the consequences of the conservative side winning other than this? Also, if the liberal side won, what would be the consequences (good or bad) of their plan besides less global economic growth?
ReplyDeleteWhen i refer to america being a terrible place for bussiness i only mean domestically. Those American companies that thrive are all outsourced to foreign markets under different foreign tax jurisdictions. These companies outsource because they do not want to pay the high corporate rate put on companies here in America. This creates problems such as unemployment, low GDP, and we are giving away tax revanues to forieng countries. Also Ironically you mentioned microsoft as one of these succesfull companies, who recently came out saying that if Obama's new tax policy is enacted that they will leave the country.
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