Authored by Chris Hamilton via Econimica blog,
Un-checked conventional wisdom is a dangerous thing. Particularly, the notion that lower corporate taxation (now 21%, down from 35%, and an all-time high in excess of 50%) would lead to accelerated economic activity via higher CapEx and accelerated corporate employment. Alas, I will show that both these assumptions are incorrect (at least at present) and hope to begin a wider dialogue regarding corporate tax policy. BTW - I'm all for lower taxation but only in concert with lower expenditures (quite the opposite of what is currently taking place, detailed HERE) and lower personal taxation .
Corporate Profits vs. Corporate Tax Receipts
First, checking the relationship of corporate profits (after tax) versus corporate tax receipts. From 1950 to 1995, profits and taxation move higher in unison.
From 1996 through the third quarter of 2018, after tax corporate profits have nearly quadrupled (+381%) while corporate tax revenue has fallen by a half billion dollars (-0.4%). Twenty two years; inflation, population growth, surging profits, and actual dollars collected from taxation of US corporations annually have declined by a half billion dollars while their annual profits have grown by $1.5 trillion!!!
Corporate Taxes vs. Personal Taxes
How does that compare with personal tax revenues? Corporate tax revenues vs. personal tax revenues, 1980 through 2018 (below). hmmmmmmmmmmmmmmmmmmmmmmmmmmmmm
And the top 5 corps right now are worth more then all us workerbies combined. Amazing how they weasel outta paying their share............
more,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
http://www.zerohedge.com/news/2018-12-17/who-benefits-lower-corporate-taxation
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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