Everyone is missing the point almost completely.
Those who say that lowering the corporate tax rate will create jobs and those that say if you lower the tax rates CEOs will just pocket the money.
Businesses do not hire because they have extra money. They hire because the demand for their product exceeds their ability to provide it. There may be a company out there somewhere that would really like to hire more people but cannot expand because they are being hampered by taxes (maybe). But this points to a need for tax reform not tax cuts.
If corporate taxes are reduced most companies will sink that money back into the business to try to improve efficiency and the bottom line. Of course, most of that will be paid into automation, both in better software and in facilities mechanical automation. This does not increase jobs and all too often even reduces the workforce.
So, what is everyone missing?
Money does not come from the top. The money that creates a sound economy comes from all those people who are not living in lavish luxury. It comes from those who are just getting by.
To maintain a steady increase in wealth and comfort that does not ever top out, cost money. That is why a loaf of bread that cost 30 cents when I was a child, costs between 2 and 7 dollars today. It is not because bread is that much better than it was back then. I'm talking about plain white bread here not triple deluxe whole grain hippie bread.
Bread has risen that much because the middle class and even lower must have SUVs, pools and expensive phones. The wealthy must have private jets, multiple million-dollar houses and all of the accouterments that used to be only for kings and royal families.
We are spiraling to the top and vast numbers of people are being peeled of as we go because there is not enough money there to support too many more entrants. The middle class is getting smaller, because it is harder to maintain vast wealth (that is why the call for tax cuts is even being considered).
We have been dragging entire nations, even continents, into abject poverty trying to maintain this ever growing need to become richer than we were yesterday.
The problem is simple … We are already too rich. All of us, not just the 1%.
Read More