America’s tax system is broken and holds back businesses from reaching their full potential, suggests Sondra Clark of The Daily Signal. High taxes on big and small entrepreneurs prevent them from growing and further benefiting the economy. Taxing these entities less would allow them to pay better wages to their employees while offering lower prices to customers. The current tax code needlessly penalizes those Americans that are trying to grow their wealth, when really it should be encouraging them. It allows big corporations to dominate markets, preventing innovative but small competitors from emerging.
Over the years, U.S. businesses have demonstrated that most savings from less taxes don’t create jobs or investment but bigger payouts for shareholders and CEOs, asserts Sarah Anderson of the New York Times. AT&T saved millions paying taxes of just 8% between 2008 and 2015 due to tax breaks and loopholes. Instead of reinvesting these savings, it bought its own stock to raise compensations for those at the top. Meanwhile, it has cut its workforce by almost 80,000 between 2008 and 2016. This trend is common among corporations that continue to seek profits. Cutting taxes won’t benefit the economy or workers.