Cutting Corporation Taxes
As reported in today’s NYTimes, congressional Republicans want to reduce the top corporate tax rate. The result would be to reduce federal tax receipts by $60 billion.
I won’t even get into the problems associated with increasing an already massive budget deficit. However, it is worth noting other two points. First, collecting a smaller share of tax revenues from corporations effectively means a lower tax rate on the individuals who own those corporations. We all know who they are. Is this really what we want to do?
Second, take a look at these historical trends in corporate tax collections, from the Center on Budget and Policy Priorities.
The pictures speak for themselves, I think. The CBPP has a nice summary of the issues involved with corporate taxes in the US. Check it out if you’re curious to know more.