Politics

It Seems Economics Drifts With The Political Winds Corporate tax cuts are good, no they are not, wait,  did I say they were? 

What to believe? Democrats are for corporate tax cuts, but now they are against them. First, the cuts benefit the economy and workers incomes and now they don’t. Who knew the validity of economics was dependent on ones political views or which party was in office?

Is there no truth in economics? 🤓. The fact is when it comes to politics and pandering there is no math or logic that means much.

In 2012, Pres­i­dent Obama and his ad­vis­ers pro­posed low­er­ing the cor­po­rate tax rate because it “cre­ates good jobs with good wages for the mid­dle-class folks who work at those busi­nesses.” [1] In 2013, Lawrence Sum­mers, Pres­ident Clin­ton’s Trea­sury sec­re­tary and chairman of Mr. Oba­ma’s Eco­nomic Coun­cil, ar­gued that the tax on cor­po­rate prof­its creates a bur­den with­out com­mensurate rev­enues for the gov­ernment, and that chang­ing it “is as close to a free lunch as tax re­form­ers will ever get.”

In 2015, De­mo­c­rat Chuck Schumer and Re­pub­lican Rob Port­man co-sponsored a Sen­ate bill to re­duce the top cor­po­rate tax rate, which is the high­est of any of the 35 coun­tries in the Organiza­tion for Eco­nomic Co­op­er­a­tion and De­vel­op-ment. “Our in­ternational tax sys­tem,” Mr. Schumer ar­gued back then, “cre­ates in­cen­tives to send jobs and stash prof­its over­seas, rather than cre­at­ing jobs and eco­nomic growth here in the United States.” Bill Clin­ton in 2016 said he re­gret­ted rais­ing the cor­po­rate rate to its cur­rent level.

Source: Commentary The Wall Street Journal October 25, 2017

[1] Vigorously opposed by the left who wanted more revenue for more spending

It’s a matter of convenience and pandering to likely voters.

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