This is the kind of cause and effect of policy that liberals just don’t seem to understand. You can’t run around the world bowing down (literally) to every bully nation state and expect them to respect you and magically change their behavior because you were nice to them. And, you can’t increase corporate taxes just because you believe the corporations can afford it and expect there to be no implications. Affording it and being willing to pay it are two different things (another idea the left seems unable to grasp). But, don’t take my word for it; listen to what the CEO of Microsoft said this week:
It makes U.S. jobs more expensive. We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.
Right now – and for that matter any time – this country needs every job it can get its hands on, especially good paying tech jobs such as those at Microsoft, but this administration once again displays its complete lack of common sense by continuing to make it more and more punitive for companies to do business in this country. Ireland provides us with a wonderful lesson in the benefits of reducing corporate taxation to stimulate an economy. In the mid 1980’s Ireland’s unemployment was running rampant and standard of living was only 63% of that of their brethren in Great Britain. The Irish government got aggressive, lowering the corporate tax rate to a paltry 12.5% (the U.S. employs a tiered system that can be as high as 35% by contrast).
The change has been breathtaking. Over the next 20 years the Irish economy grew employment by 50% -that’s the equivalent of 68 million new jobs in the U.S. (not possible of course, but places their accomplishment in perspective) – and as a result, of course, tax revenues went WAY UP. Ireland is now a country attracting businesses and immigrants as opposed to the nation it was in the mid 1980s, withering away to nothing.
In today’s global economy it is beyond short-sighted and bordering on economically suicidal to attempt to squeeze these companies for more of their hard-earned profits. Every day, there are fewer and fewer reasons for them to continue to pay the exhorbitant costs of doing business in the United States. The cause of high costs and high taxes leads to the effect of lost jobs and lost tax revenue. The sooner the left comes to understand this basic and obvious principle, the sooner this government can begin to implement tax policy that will give the American people a fighting chance at a prosperous future.