mercredi 20 décembre 2017

High corporate tax rates - do they result in trickle down and/or prosperity?

Not being a frequent visitor to this board, apologies if this has been covered.


I heard an interesting hypothesis about the rates at which corporations are taxed.

I am not saying this is valid or holds water, just that it is interesting.

During the Eisenhower administration, the corporate (income) tax rate was somewhere around 90%. Any and all profits would be taxed at that extremely high rate.

Not wanting to be taxed, the corporations spent their profits. They improved factories, increased wages, expanded production, invested in the community - all of this spending to avoid paying the 90% or so rate and all of this spending lead to prosperity.


Does this hypothesis make sense? Not knowing much about economics, I can see how it makes sense with a cursory glance, but, can anyone who is more erudite about economics explain if this is viable or not?


via International Skeptics Forum http://ift.tt/2BdjBEx

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