Corporate profits, as a percent of GDP, have doubled in the past 40 years. But where’s that money going? Not to hiring, paying higher wages or investing in equipment. Corporations are instead using their profits to further reward shareholders. And that strategy, argues billionaire investor Nick Hanauer, is killing America’s economic growth.
President Barack Obama’s budget will propose an ambitious six-year, $478 billion public works program of highway, bridge and transit upgrades, half of it financed with a one-time mandatory tax on profits that U.S. companies have amassed overseas, White House officials said. Continue reading
States lower their corporate tax rates to attract new businesses. But who actually sees the economic benefits of lower corporate tax rates — the firm owners and their shareholders, the workers or the land owners in that state? A new study from the National Bureau of Economic Research finds out. Continue reading
In the past three years, 22 American companies have relocated outside U.S. borders, usually through mergers with or purchases of a foreign company. That move, known as a tax inversion, means corporations are no longer subject to American corporate taxes. Jeffrey Brown learns more about the strategy and its effect on the economy from Roberton Williams of the Tax Policy Center. Continue reading
Ending the corporate income tax may be the best way to make corporations, and not American workers, bear the tax burden that comes with corporate profits, argues Larry Kotlikoff. Continue reading
In other news Wednesday, a team from the U.N.’s nuclear watchdog agency ended a two-day mission to Iran, but the delegation’s head said talks failed to yield any significant progress. Also, nearly 50 people were killed in Argentina when a commuter train crashed at a Buenos Aires station. Continue reading