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What happens when your tax rate is too high?

August 8, 2014

For one thing, you get nonsense-on-stilts like this:

The United States Needs Corporate ‘Loyalty Oaths’

Big corporations are fleeing for lower tax rates abroad. With reform legislation going nowhere, it’s time to think creatively and institute newfangled ‘non-desertion agreements.’

Do none of these people ever think…

– about the incentives companies are reacting to?

– that corporations are just groups of people; like school boards or the local Lions Club (except with better financial savvy)?

– that the idea of taxing corporations is sort of nonsense to begin with?

Corporate taxes are paid by customers (people), or by reduced earnings to shareholders (people), or by reduced salaries and benefits to employees (people), or by reduced reinvestment — causing job and opportunity losses (to people).

economic-patriotism

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