I question an end to the corporate tax across the board. I would not want to provide additional incentives to the big Wall Street financiers who record profits through financial manipulation and not investment. I would also not want to encourage corporations to increase profits by outsourcing more jobs overseas.
Instead, I favor adjusting the corporate tax system to encourage investment in US manufacturing. A resurgence in US manufacturing will create the private sector jobs the country so desperately needs. This could be accomplished by cutting the federal tax rate to zero on profits generated from manufacturing in the United States. This action will immediately cause companies to reassess decisions in process to outsource more production overseas, while at the same time dramatically shift the economics of producing new products in the US instead of overseas. The new economics will encourage entrepreneurs to start up new manufacturing enterprises across the country.
A second change in the tax code will encourage investment in US companies. End double taxation of dividends paid by US companies to US citizens by changing the current 15% personal tax rate on dividends to zero. To encourage investment in US operations the zero tax rate on dividends would be allowed only on dividends paid by corporations deriving over 50% of profits within the United States. Over time, this shift would encourage companies to invest in expanding US operations and paying a percentage of profits to shareholders. Paying cash dividends to shareholders is a much more efficient way to return excess capital to shareholders than stock buybacks which are diluted due to high fees paid to investment bankers.
To end the slide to socialism we must encourage innovation, business creation, and job growth in the domestic economy. What better way to encourage the investment in job creating enterprises than to reward those who make the capital investments in job creating US manufacturing? Today’s tax and trade policies reward financial speculators and those who move investment out of the US to other countries.
The bottom line is that the cost of certain businesses and manufacturing - even including shipping and other inconvenieces like language, time zones, etc. - is higher in the US than overseas. Period. When the price of labor and government mandates total more than the other guy’s, the laws of economics will kick in.
Now, governments may try to thwart those laws, but time eventually takes its toll on the jiggerers. Making additional patches like tax incentives only forestalls the eventual castor oil, the pain, the the day of reckoning. Doing so exacerbates the problem and makes the eventual solution even more drastic.
Nice nuanced approach you have there. But of course you think that we have time for a precision surgicalized economically nuanced recovery?
We are far beyond that brink,and we need to have a wholesale jump start of our economy. Not wart removal.
I am amazed about all this pap about transparency. We have perfectly good regulatory rules and laws now. I ask you, WHY ARE THEY NOT ENFORCED? More rules won’t get it done, more bureaucracy won’t either.Its the same with immigration law, those laws are NOT enforced.WHY?
We need politics OUT of regulation, which translated to Fannie and Freddie pushing sub prime mortgage applications
with banks so hard that applicants were not required to submit an income tax return.That was a political problem.
And they are STILL doing it. The political problem still exists.
Now many try to fix a political malaise with “transparency?”
What a laugh.
We need fed political and fed bureaucrat heads rolling, not transparency, which at best will simply constitute one more propaganda portal for the socialist mob.
Instead, I favor adjusting the corporate tax system to encourage investment in US manufacturing. A resurgence in US manufacturing will create the private sector jobs the country so desperately needs. This could be accomplished by cutting the federal tax rate to zero on profits generated from manufacturing in the United States. This action will immediately cause companies to reassess decisions in process to outsource more production overseas, while at the same time dramatically shift the economics of producing new products in the US instead of overseas. The new economics will encourage entrepreneurs to start up new manufacturing enterprises across the country.Sounds to me like your proposal would mainly create jobs for the bureaucrats and tax accountants and lawyers and regulators that would be required to identify which dividends qualified for your special rates, and what constitutes "manufactured in the United States", etc. Trying to manipulate the tax code to get companies to do the "right" kind of investing is the same sort of socialistic thinking that has caused much of the problems. Simplifying, rather than further complicating, the tax code is what is needed.A second change in the tax code will encourage investment in US companies. End double taxation of dividends paid by US companies to US citizens by changing the current 15% personal tax rate on dividends to zero. To encourage investment in US operations the zero tax rate on dividends would be allowed only on dividends paid by corporations deriving over 50% of profits within the United States. Over time, this shift would encourage companies to invest in expanding US operations and paying a percentage of profits to shareholders. Paying cash dividends to shareholders is a much more efficient way to return excess capital to shareholders than stock buybacks which are diluted due to high fees paid to investment bankers.