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Tuesday, 09 August 2011 13:23

Why Don't Corporations Pay Much Higher Taxes Until They Actually Produce Jobs in the US?

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MARK KARLIN, EDITOR FOR BUZZFLASH AT TRUTHOUT

Why don't corporations pay much higher taxes until they produce jobs in America?

After all, workers don't get paid until after they complete their jobs every couple of weeks or so. That's the way companies compensate employees.

So, why not wait to tax corporations at a lower rate until they prove that they are "job creators" in the United States - not overseas?

And every year, the businesses would have to prove that they haven't moved jobs to lower-wage nations, otherwise their taxes will zoom up again.

What Ronald Reagan said about the Soviet Union - "Trust but verify" - should be applied to American business, because they have gotten rock-bottom tax breaks and loopholes - but they mostly use them to increase their profit by employing sweat-shop labor in other nations. As trickle-down economics has played itself out over the last few decades, it has shown that lower taxes for the rich and corporations lead to a very large net loss of jobs in the United States, not an increase.

So, a BuzzFlash at Truthout reader suggested a simple solution. Raise corporate taxes high up, and apply a descending adjustment downward if a business creates jobs in America or doesn't fire employees and move jobs overseas.

Like workers, corporations should only be compensated when they get the job done, which is the job of creating work here in America, not in some far-away lands.

 

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