Tax cuts for corporations and the wealthy have been shown to have a minimal effect on job creation or economic growth, asserts Marcus Ryu in The New York Times. In essence, they bolster a company’s post-tax revenue, giving more money to its shareholders. Lower taxes do not push companies to employ more workers, just like higher ones don’t prevent them from hiring them. Tax cuts contribute to income inequality, which is in no one’s interest, not even that of the rich. Tax cuts have contributed to polarizing American society and created huge political tension. Lowering the corporate tax rate gives money to the people that need it least.
A lower corporate tax rate incentivizes the kind of growth that benefits the economy and encourages job creation, infers Ike Brannon of Forbes. Letting companies hold onto more of their profits gives them more cash flow to pay workers better as well as creating new positions to hire more people. This way, lowering the corporate tax rate has a direct impact on employment rates. By one estimate, workers shoulder between 45% to 75% of the corporate tax rate through layoffs or lower wages. When companies pay more taxes, their employees are the first to feel the effect of it. It is better for the country to tax corporations less so they can create more jobs.