High corporate taxes kill American jobs. That is an undeniable fact that liberal Democrats seem strangely unfamiliar with. Unless that is, those same Democrats are seeking to weaken the U.S. economy and make America a far less powerful nation. Now Barack Obama and his fellow Democrats are seeking to raise the record setting corporate tax rate even higher, a move that will eliminate yet more American jobs and decimate the Middle Class.
The numbers don’t lie, Democrats have made America a horrible place to do business and create jobs.
Of particular note should be the fact that our neighboring border nations have corporate tax rates that are nearly ten percent lower (Mexico) or up to 13% lower (Canada) meaning the incentive for American corporations to either move south or north to far more tax friendly countries is considerable.
The current crop of Democrats both in the White House and Congress want higher corporate taxes to pay for ever bigger government at the expense of Middle Class jobs – jobs that are being shipped by the thousands to Mexico, Canada, and other parts of the world.
When pushing for higher tax rates (for both individuals and corporations mind you) Barack Obama and his Democrats will cite the Clinton era as a lesson that higher taxes create increased prosperity. That depiction of the Clinton years is an all too often repeated lie.
During Bill Clinton’s first term, when he did raise marginal income tax rates to 39.6% at the high end, the economy responded by growing at a rather sluggish pace, and Middle Class incomes stagnated. (sound familiar?)
What is also left out regarding that time period, is that the U.S. corporate tax rate in the 1990’s was 35% – not the nearly 40% it is during the Obama era. Regulations and a myriad of other taxes were much lower as well.
The Clinton years economic “boom” did not take place until his second term was underway, and AFTER Republicans had taken control of Congress. Sweeping welfare reform was signed, and tax CUTS were initiated, namely by slashing the capitol gains tax from nearly 30% to 20%, increasing the death tax exemption to a million dollars, increasing the limits for deductible IRA’s, and then LIMITING government spending.
Those were the moves that initiated the economic boom of the Clinton years, a boom that freed the burgeoning tech market, (tech bubble) created billions in new wealth (that were then taxed and thus increasing government revenues) and for the Middle Class, JOBS-JOBS-JOBS.
Even Bill Clinton himself admitted as much in 1995 when he told a group of supporters in 1995, “I raised taxes too much.”
If you were a new company looking to locate in a country, why would you choose an environment that would take you at a rate of nearly 40% when you can find other countries willing to tax you at rates that are in many cases, less than half that? How many American jobs have been lost to the 40% corporate tax rate? How many times do Democrats seem willing to make the cry of companies “paying more” when in fact that only makes certain that it will be the American Middle Class who once again ends up paying the most?
Enough is enough – throw the bums out this November…