Originally published at http://www.commondreams.org/views/2019/10/08/no-more-half-measures-corporate-taxes
Stiglitz should give some context. Corporate taxes contribute about 7% to federal revenue, projected to be $256 billion out of total of $3,643 billion for year 2020. In the 1960s the corporate share was around 20% of revenue. https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762 – He should mention the giveaway when the TCJA gave a freebie to corporations when they “repatriated” their foreign profits, it amounted to trillions. In a short article like this he should mention that income is grossly unequal, and wealth much worse. The cure is new power to workers to join unions and have power to effectively shut-down enterprises that will not raise wages. In 1965 the “average weekly earnings of production and nonsupervisory workers”, says the Bureau of Labor Statistics, was higher than in 2019. — https://data.bls.gov/timeseries/CES0500000031 --Those workers are 80% of all who work. In those 54 years the per capita economic growth tripled. What I just mentioned is somewhat crucial for the majority of Americans to learn, more so than the intricacies of the tax evasion of multinational corporations who have abandoned any sense of patriotism to the U.S. My blog: http://benL88.blogspot.com
Maybe tax the real profits as they are paid to the shareholders (in the form of dividends and share buybacks). Eliminate the corporate income tax and replace it with a tax, paid by the corporation, on what it pays to shareholders. A small annual tax (maybe double the 5 year treasury note rate) on retained earnings would also be needed for this to work well.
BL8 - You wrote…The cure is new power to workers to join unions and have power to effectively shut-down enterprises that will not raise wages.
With respect…I disagree…Capitalism is the problem. It desperately needs to be replaced by a “participatory economics” system in which people own, control and work within that society. Very much like the Hebrew Kibbutz Givath-Brenner.
Mr. Blair M. Phillips
St. Catharines, Ontario,