Well, I would hope so, because otherwise our economy would be continually shrinking. However, this seems to be a favorite response of those who claim the solution to our deficits is as simple as to just cut spending. Yeah, like that is ever going to happen in any meaningful measure.
What these people need to look at is the historical rate of tax revenues from the corporate sector in the last century of our nation's history. Back when "America was Great", e.g., the 1950's, corporate tax revenues generally ran in the 25-33% range of total tax revenues. Since the late 60's however, this percentage has steadily declined to the 10% range, give or take, over the last couple of decades or so. In the meantime, the percentage of individuals' income tax revenues has stayed pretty steady in the 40-50% range starting after the recovery of the Great Depression (circa 1944).
So how does the recent republican congress and president deal with this? Why, they cut corporate tax rates to record lows. Read that again. And, while they have done that, our deficits are soaring again, in booming economic times yet when our tax revenues should produce historic highs each year. But, we have killed the Golden Goose, and not reaped the benefits that we should be getting from these entities who are earning record profits.
Many of our major corporations today have become international entities who threaten to move their operations (or even more simply their international "headquarters") to tax friendlier countries in order to gain the maximum profits for their shareholders. Well, that makes perfect economic sense I guess, for the shareholders. But, in the meantime, these same corporations rely on our, the people's, US military to keep their shipping lanes open, protect their overseas markets and resources in unstable countries, and use our courts to defend themselves from class action suits from some of their inferior products and services, all the while our Congress (our people's Congress?) passes legislation that further enables this. What is wrong with this picture?
For one, corporations are a man-made entity. To my knowledge, they hold no place in our Founding Fathers' constitution. They no longer feel responsible to their communities (unless there is a tax write off in it for them). They do not live or breathe or share the dreams of the people who work for them. In fact, they largely look down on the people who work for them in favor of their shareholders while income disparity continues to grow to historic highs. And some of the people's politicians claim that "corporations are people (my friend(?)" sic). In a so-called "Christian" nation, one might be tempted to ask, WWJD, or say?
Just some food for thought, for those who hang their hats on our "record tax revenues". I would simply like to propose a more balanced approach to pay our bills like we used to have, "when America was great".
Here is a link to some of the stats I have cited if anyone wants to look at them, and draw their own conclusions.
https://taxfoundation.org/federal-tax-revenue-source-1934-2018/
What these people need to look at is the historical rate of tax revenues from the corporate sector in the last century of our nation's history. Back when "America was Great", e.g., the 1950's, corporate tax revenues generally ran in the 25-33% range of total tax revenues. Since the late 60's however, this percentage has steadily declined to the 10% range, give or take, over the last couple of decades or so. In the meantime, the percentage of individuals' income tax revenues has stayed pretty steady in the 40-50% range starting after the recovery of the Great Depression (circa 1944).
So how does the recent republican congress and president deal with this? Why, they cut corporate tax rates to record lows. Read that again. And, while they have done that, our deficits are soaring again, in booming economic times yet when our tax revenues should produce historic highs each year. But, we have killed the Golden Goose, and not reaped the benefits that we should be getting from these entities who are earning record profits.
Many of our major corporations today have become international entities who threaten to move their operations (or even more simply their international "headquarters") to tax friendlier countries in order to gain the maximum profits for their shareholders. Well, that makes perfect economic sense I guess, for the shareholders. But, in the meantime, these same corporations rely on our, the people's, US military to keep their shipping lanes open, protect their overseas markets and resources in unstable countries, and use our courts to defend themselves from class action suits from some of their inferior products and services, all the while our Congress (our people's Congress?) passes legislation that further enables this. What is wrong with this picture?
For one, corporations are a man-made entity. To my knowledge, they hold no place in our Founding Fathers' constitution. They no longer feel responsible to their communities (unless there is a tax write off in it for them). They do not live or breathe or share the dreams of the people who work for them. In fact, they largely look down on the people who work for them in favor of their shareholders while income disparity continues to grow to historic highs. And some of the people's politicians claim that "corporations are people (my friend(?)" sic). In a so-called "Christian" nation, one might be tempted to ask, WWJD, or say?
Just some food for thought, for those who hang their hats on our "record tax revenues". I would simply like to propose a more balanced approach to pay our bills like we used to have, "when America was great".
Here is a link to some of the stats I have cited if anyone wants to look at them, and draw their own conclusions.
https://taxfoundation.org/federal-tax-revenue-source-1934-2018/
