The US lowered its top
corporate tax rate from 35% to 21% effective 1/1/18. In the 1990s US companies
began to off-shore most of its manufacturing jobs to countries with lower labor
costs, lower corporate tax rates, cheaper cost of living, tax holidays, fewer
regulations and all manner of bribes. The average global corporate tax rate was
reduced from 1980 to 2017 by every other country and stood at 23%.
US government failure
to keep its corporate tax rate competitive had resulted in the decimation of
the US middle class. In addition, from 1989 to 2017, the US had doubled and
tripled the number of welfare immigrants entering the US with work
permits. The US government also adopted
unnecessary job-killing regulations and malinvestments. The US government
implemented UN Agenda 21 and adopted NAFTA in 1993.
As US companies
off-shored manufacturing jobs, US employees were laid off and had to compete
with 60 million immigrants for minimum wage jobs. Immigrants took the jobs that had been done
by US students and college grads remained in minimum wage jobs. There were 100
million working-age US citizens not in the Labor Force.
As of 9/19/18, US
corporations had repatriated $465 billion in foreign owned profits and left
$2.5 trillion overseas.
The Trump Agenda
included the elimination of illegal and excessive immigration, job-killing
regulations and job-killing corporate taxes and enforcing “fair trade”. The
regulations have been pared back and the corporate taxes are now competitive,
but the immigration problem is still in play. Tariffs should result in
returning critical manufacturing back to the US and the Trade Deficit is the
measure to watch going forward.
Obama’s expensive
energy policies would have increased US electricity bills by 500% and crashed
what was left of the US economy. Obamacare has quadrupled the cost of
healthcare and doubled the National Debt from $10 trillion to $20 trillion.
We need to watch
several reports to track our progress from year to year. This includes data by country including the
US Trade Deficit and Nominal GDP, Poverty %, Government, Corporate and
Household Debt, Labor Force Participation Imports, Exports and Trading
Partners. Search Economy by Country.
Corporate Income Tax
Rates around the World in 2017, by Kari Jahnsen, Kyle Pomerleau, 9/7/17,
taxfoundation.org.
This article reports
that the US corporate tax rate was 38.91% to include State taxes, but admits
that the federal tax was 35%. So the corporate tax total is actually not 21%,
but it is closer to 25%. This puts the US higher than the 23% global corporate
tax average.
It reports that the
average corporate tax rate in Europe is 18.35%, but doesn’t mention the
additional 20% VAT tax in Europe. The US has no VAT or national sales tax.
Norb Leahy, Dunwoody
GA Tea Party Leader
No comments:
Post a Comment