.png)
By Barbara Hollingsworth, Apr. 15, 2014
(CNSNews.com) – Eliminating or greatly reducing America’s corporate income tax “produces rapid and dramatic increases” in “U.S. investment, output, and real wages,” creating jobs for American workers and boosting the nation’s Gross Domestic Product (GDP) a full 6 percent, according to a new study released Tuesday on Capitol Hill.
“The tax is mostly about driving companies out of the United States,” Dr. Laurence Kotlikoff, aneconomist at Boston University and one of the study’s four co-authors, told CNSNews.com.
“The burden of the corporate income tax falls mainly on workers,” he pointed out, “and they are the ones who will gain most from reform.
“When you turn off the corporate tax and raise personal taxes, surprisingly good things happen,” explained Kotlikoff, director of the new Tax Analysis Center,. “A lot of companies abroad would start operating in the U.S., and U.S. companies that are investing abroad would start investing here.”
At 35 percent, the U.S. currently has the highest marginal corporate tax rate among developed countries. On March 31st, Moody’s Investor Services reported that in 2013, non-financial U.S.-based businesses held $947 billion in cash overseas, up 12 percent from 2012.
“The high amount reflects the negative tax consequences of permanently repatriating money to the U.S. and the domestic use of cash for dividends, share buybacks and the majority of acquisitions,” said Moody’s vice president Richard Lane.
The study used a state-of-the-art, life-cycle computer model to track capital flow simulated by tax reform in the U.S. while assuming no changes in tax rates in Europe, Japan, China and India. It found that eliminating the corporate income tax would return a large amount of capital to the U.S., where it would be put to use creating jobs and expanding productivity.
Read the full story: www.cnsnews.com
Follow Larry Elder on Twitter
"LIke" Larry Elder on Facebook
No comments:
Post a Comment
Comment Policy:
The author of this blog will attempt to engage in conversation via the comments section whenever possible and recognize the 24/7 nature of the internet. Moderating and posting of comments will occur during regular operational hours Monday through Friday. Comments submitted after hours or on weekends will be read and posted as early as possible, however admins and/or the author is unable to commit to replying to every comment posted.
This is a moderated blog. That means all comments will be reviewed before posting. In addition, it is expected that participants will treat each other, as well as the author and admin, with respect. Comments that contain vulgar or abusive language; personal attacks of any kind will not be posted. Comments that are spam or that promote services or products will not be posted. It is requested that all comments remain on topic.
The Elder Statement blog does not guarantee or warrant that any information posted by individuals on this blog is correct, and disclaims any liability for any loss or damage resulting from reliance on any such information. The Elder Statement blog may not be able to verify, does not warrant or guarantee, and assumes no liability for anything posted on this website by any other person. The Elder Statement blog does not endorse, support or otherwise promote any private or commercial entity or the information, products or services contained on those Web sites that may be reached through links on our Web site.
To protect individual privacy and the privacy of others, please do not include phone numbers, addresses or email details in the body of a comment. Such information will result in removal of a comment.
Thank you for your attention.
The Elder Statement