When Professor Mishra and I debated the Bush tax cuts a few weeks ago, we agreed to limit the debate to income taxes, but the Professor went a bit off-topic. He spent half his op-ed talking about corporate taxes, and I didn’t get a chance to respond.
First, let’s see what I’m responding to:
A high corporate tax rate moves jobs overseas. Currently American companies are sitting on more than $2 trillion of cash overseas, which is used for hiring and investments in foreign operations.
The United States has the second highest corporate tax rate in the world. Two things we must do to spur job growth and expand the taxpayer base in the America: Cut the corporate tax rate from 35 percent to 20 percent, the median tax rate for the developed countries, and eliminate the taxes on repatriation of foreign earnings.
Wow. Every sentence there is either wrong or very misleading. Continue reading “Chandra Mishra Rides Astride a Trojan Horse”
What the Chinese know, and Americans have forgotten, is this: all private wealth is built on a foundation of commonwealth. And that commonwealth is financed with taxes.
— David Cay Johnston (Syracuse University)
Nine Things the Rich Don’t Want You to Know About Taxes — David Cay Johnston
- Poor Americans do pay taxes.
- The wealthiest Americans don’t carry the burden.
- In fact, the wealthy are paying less taxes.
- Many of the very richest pay no current income taxes at all.
- And (surprise!) since Reagan, only the wealthy have gained significant income.
- When it comes to corporations, the story is much the same — less taxes.
- Some corporate tax breaks destroy jobs.
- Republicans like taxes too.
- Other countries do it better.
Top Ten Tax Charts — Center on Budget and Priority Policies
- The United States is a low-tax country.
- Federal income taxes on average families are historically low.
- Corporate tax revenues are historically low.
- Effective tax rates on wealthiest people have fallen dramatically.
- Bush tax cuts heavily tilted to the top.
- Rise in debt could be halted over next decade by letting Bush tax cuts expire.
- Tax expenditures are substantial.
- Income gains at the top dwarfed those of low- and middle-income households.
- Top 1 percent’s share of total after-tax income has more than doubled over the past thirty years.
- Most of budget goes toward defense, Social Security, and major health programs.