Why Lower Corporate Tax Rates?

Why Lower Corporate Tax Rates?

We've had a few readers ask why Congress wanted to lower corporate tax rates in the US. In particular, US corporations already have record-setting profits--why do they need more money? Should we, instead, be raising taxes on corporations? Indeed, plenty of articles make the case that the corporate tax cuts won't create jobs at all. 

The problem with these articles is that their counter-arguments are all arguing against the wrong argument. The logic behind a corporate tax cut is not in fact, "more corporate profits will mean more jobs." 

If that's not the argument, what is?

 

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What's Behind the Growing Pay-Productivity Gap? Pt 2, Measurement Problems

What's Behind the Growing Pay-Productivity Gap? Pt 2, Measurement Problems

In the last post, we explored some different common hypotheses behind the observed phenomenon of a growing gap between worker productivity and worker pay. 

Today we'll look at how tough it is to explain this gap based on how hard it is to measure different parts of the graph--and, luckily, find a few places that seem a little more pinned down.

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What's Behind the Growing Pay-Productivity Gap? Pt 1, Hypotheses

What's Behind the Growing Pay-Productivity Gap? Pt 1, Hypotheses

What's behind the growing gap between US worker productivity and their pay? In this first half of the analysis, we look at some of the common knee-jerk answers and some of their complications.

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Misrepresenting Policy: The GOP "Private Jet Owner Tax Cut"

Misrepresenting Policy: The GOP "Private Jet Owner Tax Cut"

The Senate tax reform bill that just passed has many changes, but one that took some flak was an apparent tax cut for private jet owners. As is often the case, the story is more complicated than it seems at first blush. All another reminder to be critical about what you read, no matter how you lean politically.

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What's in the GOP Senators' Tax Bill?

What's in the GOP Senators' Tax Bill?

The Senate is working on their own version of a tax bill that would need to be reconciled with, or replace, the House is working on. We're going to look at what's in the Senate bill. We've seen a lot of oversimplification of this that seems to intentionally cherry-pick certain parts of it without looking at the whole picture. 

So let's dive in and figure out what's going on.

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Trump's Wall is Falling, and the Dangers of Relying on Symbols

Trump's Wall is Falling, and the Dangers of Relying on Symbols

Has Trump's wall become an albatross around his neck? A ball and chain? An Achilles' heel?

Learn how these--and other--symbols can be a hinderance when trying to govern.

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The RAISE Act, and How to Analyze the Impact of Immigration Proposals

The RAISE Act, and How to Analyze the Impact of Immigration Proposals

There's a lot of disagreement among Americans about whether we need more or fewer immigrants, and what types will be most helpful. What do economic analyses say on the subject, and about the RAISE act?

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Is US Political Polarization Turning a Corner?

Is US Political Polarization Turning a Corner?

Last week the Republicans tried three times to pass some sort of repeal to the ACA (Obamacare) along party lines. In our last podcast episode we talk about the complex forces and rules that caused these three attempts to fail.

Politically, this much failure is dangerous. Trump and the GOP are looking for a much-needed legislative win. Trump accused the GOP of being "total quitters" if they abandoned another repeal bill. But right now, they just don't have the votes.

So health reform is dead until someone gets a larger Senate majority, right? 

Well, maybe not.

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Tying Trump's Hands On Russian Sanctions, AKA "You Shall Not Pass!"

Tying Trump's Hands On Russian Sanctions, AKA "You Shall Not Pass!"

Donald Trump is getting a quick lesson in the limitations of his office. As much as he’d like to will his policy proposals into existence, he is learning - as have all other presidents before him - how constrained his new position of power actually is.

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Fact Check: The Universal Health Care Tax Cut

Fact Check: The Universal Health Care Tax Cut

Recently I saw a Facebook post that was starting to seriously make the rounds among my more politically inclined friends. It made the case that if the US were to switch over to a Single Payer system, it could pay for the entire thing with its current budget and also provide a $200B annual tax cut. Also nobody would pay for private health insurance. Sounds pretty great.
Unfortunately it has zero citations so I decided to do the research. Is it anywhere close to accurate or totally full of it?

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