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Tuesday, August 5, 2014

Corporations should at least create jobs 
in exchange for lowering -- or eliminating -- taxes.

Alan: Once corporate taxes are eliminated, we lose the ability to modify corporate behavior by using tax adjustment as "carrot" and "stick." I happily envision the complete elimination of corporate taxes but also hold that corporations should earn "tax breaks" rather than be entitled to them. America's moneyed class is keenly aware that inducing a sense of permanent "entitlement" is often a bad thing. Tax rates should be lowered (and in some cases eliminated) for those corporations that create "good jobs" whereas tax rates should be hiked for corporations that do not generate new jobs.

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"Automation, Robotization, Software-Enhanced Productivity and Permanent Job Loss"


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"The corporate income tax is so harmful that we should just get rid of it. That would really help America's struggling middle class. Economic modeling conducted by Boston University economist Laurence Kotlikoff finds 'a very strong, worker-based case' for swinging the ax....Now, Kotlikoff's findings are probably at the high end of estimates. But they are tantalizing nonetheless. You can imagine, too, how multinational corporations currently based in low-tax countries might suddenly see the huge advantage of headquartering themselves in the no-tax U.S. Of course, we can't depend on this tax cut paying for itself." James Pethokoukis in The Week


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