Von Aldo

Cut Corporate Taxes

When it comes to taxes, much hyperbole is thrown around from various ideological groups. Corporations should be taxed out of some definition of "fairness," says the left; high corporate taxes are unfair, say conservatives and liberarians, because, well, it amounts to double taxation. A post from yesterday on RealClearMarkets.com seems sensible enough--as in attempting to avoid ideology, sticking instead to econ 101.

Among the author's points (John Tamny, an editor of RealClearMarkets, and a senior economic advisor for H.C. Wainwright Economics, among other things) is this neat truth that the Democrats and the Left simply ignore:

"But more than customers, enterprising individuals are arguably harmed most by the corporate tax in the same way that high levies on the rich ultimately hit the non-rich most acutely. When governments succeed in expropriating the earnings of the rich, they reduce the amount of capital in the private sector that would otherwise be available to fund economic growth. Along those lines, it can’t be stressed enough that without capital, there are no wages."

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