“…the United States already has the fourth-lowest corporate tax revenue as a share of the economy in the industrialized world…”

seems to point right back here to this article.

According to Keynes, the most efficient means of government stimulating the economy is deficit spending. We’ve had that for six/seven years with nearly no effect save increased debt. Perhaps one might consider that the economy may not be healthy enough to respond to a stimulus. One doesn’t give meth to a heart patient.

Fixing the budget will help fix the patient. Trimming the mostly non-productive Defense budget by 20% would help. Increasing the number of tax brackets (Why the hell should $400K and $400M incomes be paying the same rate?) would help. Establishing rational petrol taxes/gas-guzzler surcharges to fuel (pun pardon) pure alternative energy research would eventually help with the trade deficit. Increasing interest rates would help our negative household savings rate. Targeted tariffs would impel environmental concerns and workers’ rights to be justly addressed globally and at the same time provide a more level playing field. Currently, an unvoted shareholder proxy counts as a yes vote. Simply ending this practice, and the incestuous relations of recompense boards, would pare the unconscionable executive pay (Do you really think the $20M CEO is working harder than the $1M one?) which in turn would balance the risk/reward ratio to something more prudent as well as lengthen the planning vistas of corporations. A single payer med system (pun pardon) would immediately help the health of business.

Tax cuts as a panacea, regardless of circumstance, is a knee-jerk, dangerous reaction which plays well in Gooberville. Somebody needs to inform the citizenry that the Bush tax cuts were just loans, loans which not only damage the health of the nation but will be have to be repaid, with interest going to foreigners, our competitors in business. Again, insane.

1) Why is it necessary to cuts taxes for corporations to make them “economically viable” when the United States already has the fourth-lowest corporate tax revenue as a share of the economy in the industrialized world?

Shouldn’t the question be why is it unnecessary to cut corporate taxes when the US has one of the highest corporate tax rates in the developed world? And furthermore, why not follow the model of other countries abroad who have been cutting their corporate tax rate to boost their economy? Ireland slashed their rates and still saw an increase in corporate tax revenue as a percent of GDP. While most tax cuts don’t result in higher revenues, there is empirical evidence to suggest that a corporate tax cut might — especially for a country that has one of the highest corporate tax rates in the world.

It always amazes me how any rational person could believe tax breaks to Corporations have a positive effect on our economy. The tax savings either go into their coffers (at an all time high currently, if I’m correct) or toward dividends, part of which may, at some time filter down into the economy.