Cutting Company Taxes is a Race to the Bottom

Naked Capitalism has published the article Cutting Company Taxes is a Race to the Bottom.

The most significant sentence in this whole thing is

But consumption has fallen, and newly subsidized businesses would still need customers in order for investing to make sense.

Or as I like to put it “What part of no freakin’ customers do you not understand?”

Shifting the tax burden from corporations to individuals is not going to provide more customers. If there is already too much production for the number of customers, wouldn’t a company have to be insane to invest in more production no matter how low the tax rate? Only a negative tax rate could spur more investment. In other words the government has to be the consumer of last resort.

Why are we arguing about the details of a policy that makes absolutely no sense at any level?

Or as the old John Oliver (the one before he sold his soul to his corporate bosses) would have said, “Why is corporate tax cutting still a thing?”

We need to drive a stake through the heart of the idea of cutting corporate taxes as a way to stimulate the current economy.

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