Lowering The Corporate Tax Rate in the United States
Since the 2008 stock market collapse it has become more apparent that there is currently a deficit of jobs in the marketplace, and that so far initiatives by the federal government to help counteract that deficit have been largely ineffective. Thus, a better plan of action for restoring jobs is by encouraging employers to hire through the lowering of the corporate tax rate in the United States. Lowering the corporate tax rate in the United States will be exceptionally beneficial in the creation of new positions, as well as maintaining existing ones, for the majority of U.S. organizations thus improving the overall economic outlook for the country.
Lowering the corporate tax rate would incentivize the creation of jobs in the United States instead of overseas, passes savings on to consumers through lower prices, and would also encourage increased investments into research and development in the country. The United States already stands a great disadvantage to the rest of the world due to its high corporate tax rate and without action being taken we stand to only continue down a path of decline in our job market.
Research continually finds that lower corporate tax rates would equate to employers having more net revenue on hand to spend on hiring. A study on data collected between 1970 and 2007 from the United States found that for every $1.00 increase in state or local corporate tax revenues that hourly wages could be expected to fall by about $2.50 (Carroll, 2009). This then creates a further snowball effect on the economy. When wages are lower for workers the result is a decreased ability to buy goods, which then in turn leads to lower income for businesses and a net increase in unemployment (Ahlseen, 2012). In addition to this research there is also a concept that is known as the Laffer Curve. The Laffer Curve was developed by economist Arthur B. Laffer and states that the corporate tax rate can be seen on a curve. If the rate goes too low the
Lowering the corporate tax rate would incentivize the creation of jobs in the United States instead of overseas, passes savings on to consumers through lower prices, and would also encourage increased investments into research and development in the country. The United States already stands a great disadvantage to the rest of the world due to its high corporate tax rate and without action being taken we stand to only continue down a path of decline in our job market.
Research continually finds that lower corporate tax rates would equate to employers having more net revenue on hand to spend on hiring. A study on data collected between 1970 and 2007 from the United States found that for every $1.00 increase in state or local corporate tax revenues that hourly wages could be expected to fall by about $2.50 (Carroll, 2009). This then creates a further snowball effect on the economy. When wages are lower for workers the result is a decreased ability to buy goods, which then in turn leads to lower income for businesses and a net increase in unemployment (Ahlseen, 2012). In addition to this research there is also a concept that is known as the Laffer Curve. The Laffer Curve was developed by economist Arthur B. Laffer and states that the corporate tax rate can be seen on a curve. If the rate goes too low the