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Title: Morning Bell: Stop Sending Jobs Overseas
Source:
The Heritage Foundation
URL Source: http://blog.heritage.org/2011/04/01 ... ll-stop-sending-jobs-overseas/
Published: Apr 2, 2011
Author: Conn Carroll
Post Date: 2011-04-02 08:42:05 by CZ82
Keywords: None
Views: 1547
Comments: 2
Morning Bell: Stop Sending Jobs Overseas Posted April 1st, 2011 at 9:26am Today, the Labor Department released its monthly jobs report showing that the U.S. economy added 216,000 jobs in March and unemployment fell to 8.8 percent. Despite these encouraging numbers, Americans still consistently tell pollsters that jobs and the economy are the most important problems facing the country. And yesterday, Gallup released a poll showing that the number one way Americans would like to see more United States jobs created is to stop sending new jobs overseas. That is a fabulous idea, and the simplest way to accomplish it would be to lower out nation’s corporate tax rate. The United States was once a leader in tax rate reduction. In 1981, President Ronald Reagan passed a broad tax cut package to encourage economic growth. How well did it work? Just compare the drops in unemployment from both the Reagan and the Obama economic recoveries. Since the Obama recovery began 21 months ago, the national unemployment rate has fallen only 0.6 points, from 9.4 percent in July 2009 to 8.8 percent today. Contrast those anemic results with the robust job growth that occurred during the Reagan recovery in the ’80s. By the 21-month mark of the Reagan recovery, unemployment had dropped from 10.8 percent to 7.5 percent—a 3.3 point drop. And Reagan didn’t stop there. In 1986 he went on to lower the federal corporate tax rate from 46 to 34 percent. The results speak for themselves: when Reagan left office in January 1989, the nation’s unemployment rate was just 5.3 percent. The world not only noted Reagan’s success but then went on to copy his successful tax cutting policies. In 1989 the developed nations in the Organization for Economic Cooperation and Development (OECD) had an average top marginal corporate tax rate well above the U.S.’s 34 percent rate. Since that time the world’s industrialized nations have dropped their average corporate tax rate to about 25 percent. The U.S., meanwhile, has gone in the opposite direction. We now have a 35 percent rate at the federal level that rises to 39 percent once the average of state corporate taxes are mixed in. And today, Japan is scheduled to implement its own corporate rate reduction, which will officially make our 35 percent rate the highest corporate tax rate in the world. Owning the world’s highest corporate tax rate is a jobs killer. Imagine you are a global corporation looking to invest in a new factory that will produce goods for American consumers. Do you build your factory with hundreds of new manufacturing jobs in Canada, where the top central government tax rate is 16.5 percent? Or do you choose a location in the United States, where the top tax rate is 35 percent? Is that even a choice? Our high corporate tax rates are a huge manufacturing job repellent. Liberals have long argued that corporate tax cuts are not necessary since the effective corporate tax rate (calculated by dividing the amount businesses pay in taxes by their incomes) is comparable to other OECD countries. But gaming the tax system to reduce your effective tax rate is not free. It requires a substantial investment in tax lawyers and lobbyists for major corporations to get your tax bill down. So again consider a foreign investor or medium-size corporation looking to expand production. Neither of the firms has the tax lawyers and lobbyists needed to lower their effective tax rate. Do they choose low-tax Canada, where they can focus on their core business and pay low taxes? Or do they choose the U.S., which requires significant resources devoted to tax law compliance and lobbyists in Washington to assure a low tax rate? Again, is this even a choice? The U.S. economy is slowly beginning to finally add jobs to the economy. But so is the rest of the world, and many economies are growing much faster. If we want to stay competitive, if we want to stop sending jobs overseas, we must lower our corporate tax rate.
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#1. To: CZ82 (#0)
The funny thing is that anybody believes these "statistics." John Williams, at www.shadowstats.com, is far more trusted then the government- at least among economists who aren't somehow on the government dole. Reality is in blue: Socialist ass-hats think "There will be no more money when the U.S. dollar has no value, until that time we can keep printing more." And yes, that IS from LF's answer to Ben Bernanke, go65, leading disfunctional and delusional socialist of the forum. "You want me to kill THE ENEMIES of Jappos, I'll kill THE ENEMIES of Jappos, Rebs, or Sioux, or Cheyenne... For 500 bucks a month I'll kill whoever you want. But keep one thing in mind: I'd happily kill you for free." Algren, "The Last Samurai" Since it's true that you have to create over 250,000 jobs a month just to keep unemployment rate flat, then how can the unemployment rate go down if you only created 216,000????????? (Must be that Liberal math)!!!!
"I love the 45 caliber M1911, I respect the 9MM M9 Beretta but I only carry a CZ for my own personal protection". Quote courtesy of Lt Col John Dean Cooper, recognized as the Father of Modern Handgunning
Today, the Labor Department released its monthly jobs report showing that the U.S. economy added 216,000 jobs in March and unemployment fell to 8.8 percent.
#2. To: Capitalist Eric (#1)
Today, the Labor Department released its monthly jobs report showing that the U.S. economy added 216,000 jobs in March and unemployment fell to 8.8 percent.
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