Oh cool, money printer is back online I guess.
As much as I want USA to invest in affordable housing, I don't want it to come from Mrs. MMT. Raise corporate taxes and reduce income taxes.
As much as I want USA to invest in affordable housing, I don't want it to come from Mrs. MMT. Raise corporate taxes and reduce income taxes.
I'm not sure you can generate much if any extra money from that.
Total revenue from income tax was $4.47 trillion in 2023, while only 0.42$ came from corporate tax. If you raise corporate taxes significantly revenue won't increase proportionally since companies will just find more efficient ways to spend money (more investment might somewhat offset that, though).
But this is testable in reverse, what happens to tax revenue when corporate taxes are cut? The tax revenue goes down.
Sure? I'm talking specifically about significantly cutting income taxes in combination with raising corporate taxes and expecting to end up with the same tax revenue.
Seeing this in action right now, between the supermarket chains in my European town's central square.
I once read in a book about corporate management by a Japanese CEO (I think it was Matsushita). His philosophy was that paying taxes should be an inescapable duty of a corporation, since their very existence is facilitated by the government providing them a business environment and their unimpaired customers paying them revenues. Interestingly, I also had a related conversation with someone from the Singapore Ministry of Economy who echoed the same principle, but from the government's perspective - it's the duty of the government to provide a facilitatory and unhindered business environment with reasonable taxation so that companies are incentivized to pay taxes. As of now, the US has a similar corporate tax rate to Singapore yet doing business is worlds different between the two (especially if you don't count Delaware).
Replying just because you said since it's still not clear at all:
> but the current definitions of corporate taxation are highly flawed.
I assumed that you meant that the government could significantly cut income taxes, raise corporate taxes and end up with the same or higher amount of money. I just don't see how is that feasible unless US could force most other countries in the world to do the same.
The point is that the US needs to find a balance between taxation and good business, kind of like Switzerland in the EU (although I agree, both are different ballgames altogether). The way I see it, there's a triangle here with three vertices to balance against - business pragmatism, optimal taxation and regulations for private markets.