Do you think that the corporate tax rate cut doesn’t make a difference? Broadcom is returning to the United States after moving their headquarters to Europe because of confiscatory tax rates in the United States. They are planning on spending one to $2 billion to build a new headquarters building and they are going to be hiring people in the United States. That is unless the Republicans in Congress screw this up and they just might do that. However, there are better examples.
I was listening to an interview on the Stuart Varney show this week. I did not catch his name but the gentleman owns a very large commercial construction company that is based in New York/New Jersey area. They have done a lot of work there. It is a very successful company that is looking to expand into Florida, Texas, and Chicago. They have built a couple of hotels in Florida but because of the slow growth in the economy and this CEO believes that they do not want to over extend by taking on debt, they have not been very aggressive in chasing different contracts. But with a 15% cut in the corporate tax rate, he believes they can expand aggressively in those areas hiring upwards of 5000 employees. Those are good paying construction jobs.
He said right now there are jobs that they could take on but he believes that with the corporate tax cut, the economy in general would take off and there would be even more industries looking to expand operations and new companies looking to enter into other industries. This means they would be requiring his services along with other construction companies. And what does that mean for the middle class and the lower class? Jobs.
Which brings me to another point; those morons in Washington DC on both sides of the aisle do not get it. I have listened to them talk for the last two weeks about focusing on tax cuts for the middle class. They believe that’s what will drive economic growth, or at least that’s what they’re saying. But depending upon which plan you review, the average American middle-class family of four would take home between $1200-2400 a year. That is not enough to drive economic growth by spending $100 - 200 more a month for the average family. Heck, a lot of those people are so far in debt with credit cards that it would be better for them to put that money towards paying down the debt.
But if we give tax cuts not only to corporations but to the wealthiest Americans as well, that will drive job growth which benefits the middle and lower class much more than a small tax cut. If you give a millionaire or a billionaire a 5% tax cut, that equates to much more money available for investment then giving the average middle-class family a 20% tax cut.
We know small business hires more people than large corporations overall. However, many of those small businesses rely upon success of larger businesses in order to even exist or expand. Just look at Grant County. If the mines are doing well and hiring locals, restaurants, retail shops, and movie theaters, all benefit from the higher wages earned by and having more people employed in the middle class.
I know a lot of people complain about giving tax cuts to the wealthy but quite frankly they are the ones paying the majority of taxes. They are the ones looking to invest that money which creates jobs for the rest of us. But the media and the liberals have convinced Republicans in Congress that we don’t want to give tax cuts to the wealthy or the corporations. That’s not true as I believe most people know giving tax cuts to everyone stimulates the economy. Maybe I’m wrong on that given the indoctrination engaged in by the media and our education system. But if you take a moment to look at history you will know that that’s what we have to do and what we have to make our elected officials do.