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Should be 0% to level the playing field for the little guys. The big companies just shift their income offshore so they already pay close to 0% tax rate. Meanwhile smaller businesses might not know about income shifting offshore so they get stuck paying 30% corporate tax rate.
Set it to 0% to encourage businesses to relocate and do business here.
Even if a corporation makes billions in profit, just look at what most do with it. They have three choices: save it, invest it or dividend to shareholders.
If they save it then it becomes the basis to make loans for banks.
If they invest it then it creates jobs as they spend it on construction, R&D etc. (however, if they invest this money offshore then no jobs are created in the USA. This is the primary reason we have high unemployment in the US currently).
If they issue dividend then it gets taxed at the personal level.
Even if a corporation makes billions in profit, just look at what most do with it. They have three choices: save it, invest it or dividend to shareholders.
So...? If you reduce the corporate tax to 0% you'll have to increase individual taxes. Why should corporations pay nothing and individuals more?
You are reduce all businesses taxes to zero, but its really not going to change anything. Individuals will get taxed more and businesses will then have to pay greater wages. There will be no real savings.
No, a year ago Ireland had an unemployment rate of 12.4%. Two years ago it was 9.4%. Hardly a rock star. The real difference between Ireland and the rest of the World is that their situation kept getting worse after 2009.
The other European countries want some of the money they borrowed Ireland back, you see, when you rapidly grow your debt it isn't that hard to grow your economy....at least temporarily.
Ah crap, you were right, they were the first to go into recession. But they are also growing faster then anyone in Europe according to the European Commision. Iriland only has foreign investors, so having a low tax rate is essential for their economy. They had problems for many reasons like a real estate bubble but the big one was the world recession which caused those foreign investors to pull out much like dubai. You cant realisticly argue that having a low corporate tax doesnt create jobs.
You cant realisticly argue that having a low corporate tax doesnt create jobs.
Yes you can, lowering the corporate tax rate may cause temporarily hot money to flow in your country but that is more than likely going to cause a debt problem. That is exactly what happened in Ireland, Ireland's problem today is its debt not the housing bubble.
You are trying to argue that Ireland's low corporate taxes did wonders for Ireland's economy, yet ignoring the massive debt build up that occurred during the same time. Ireland used debt to offset the lower taxes, so it got the benefit of both increased investment and increased government spending. Without the debt, reduced government revenue would have resulted in a reduction in government jobs and hence a weakening of the economy.
I really don't get how you guys think about this, there is no magic money here. If you reduce taxes you reduce government spending which reduces government jobs. Now, these jobs may be picked up by private industry, but then there is just a shift from public to private. Hence the serious question here is not "what tax rate is best", but rather which areas of the economy should be private and which should be public.
Anyhow, Ireland's external debt is around $2.3 trillion, that is $500k per capita!! There was never a rock star.
To me listening he wants to give o some and take back on others. Basically he even wants to exempt about 80% of the budget from freezes. Its a shell game just has his own commison said . He only gave lip service to that also. In the end he and federal governamnt are way behind staes and local government as always.That si where to look for the motiio of politcs and polisy is beihng set as always. The fedral will just be late to the party has always.
Yes you can, lowering the corporate tax rate may cause temporarily hot money to flow in your country but that is more than likely going to cause a debt problem. That is exactly what happened in Ireland, Ireland's problem today is its debt not the housing bubble.
You are trying to argue that Ireland's low corporate taxes did wonders for Ireland's economy, yet ignoring the massive debt build up that occurred during the same time. Ireland used debt to offset the lower taxes, so it got the benefit of both increased investment and increased government spending. Without the debt, reduced government revenue would have resulted in a reduction in government jobs and hence a weakening of the economy.
I really don't get how you guys think about this, there is no magic money here. If you reduce taxes you reduce government spending which reduces government jobs. Now, these jobs may be picked up by private industry, but then there is just a shift from public to private. Hence the serious question here is not "what tax rate is best", but rather which areas of the economy should be private and which should be public.
Anyhow, Ireland's external debt is around $2.3 trillion, that is $500k per capita!! There was never a rock star.
Much of Ireland's debt is due to their social programs, they pay 3 times more in unemployment then other European countries and also have very generous pension plans for retirees. So you cant blaim their low tax rate for their spending. Tax rates must coincide with spending. They cant have it both ways and neither can we.
Much of Ireland's debt is due to their social programs, they pay 3 times more in unemployment then other European countries and also have very generous pension plans for retirees.
So you cant blaim their low tax rate for their spending. Tax rates must coincide with spending. They cant have it both ways and neither can we.
You're not getting it. The point isn't to blame their low taxes for their spending, but rather to note that spending big while cutting taxes will generate a lot economy activity. But it doesn't last, the only way you can spend big and cut taxes is by increasing debt.
There was no Irish success story, but rather a story of a nation that irresponsibly cut taxes while taking on massive debt to fund the government. If they had made corresponding spending cuts, many jobs would have been lost and no success story. Just a story, at best, about a country moving jobs from the public sector to the private sector.
I aggree but i think that the private sector would have out paced the public sector...if they would have done it right.
Other than purely ideological reasons...why? Ireland wasn't a communist state, its public sector was doing things that most public sectors do.
If shifting social programs to the private sector was indeed better for the economy why hasn't the US economy out performed Europe?
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