20 January, 2021

This Alone Should Disqualify Her from Holding Office

Treasury nominee Yellen: U.S. can afford higher corporate tax if it coordinates globally (cnbc.com)

This is code for “if we can get other countries to also raise their taxes so there will be no safe havens, we can destroy ways of hiding corporate money from us”.

I’ve said it many times. Corporate taxes are completely regressive. They’re just about the most horrible thing possible for the economy and the citizens. They are effectively just an additional expense to the company that gets passes on to:

  1. Consumers – in terms of higher prices
  2. Shareholders – in terms of lower dividends
  3. Employees – in terms of lower wages and benefits

History has shown us that the biggest one of these by far is #3, and the smallest is #2. So, if you are an employee of a corporation or a consumer of the products and services of a corporation, higher corporate taxes directly affect you in a negative way.

The only fair corporate tax rate is Zero. You want the economy to explode like gangbusters, drop the rate significantly. It worked for Trump. You want to kill the economy? Raise the rate significantly.

This is simple math, and well known, even to Keynesians.

So, why would a Treasury Secretary deliberately try to destroy the economy?

Good question.


This is what you voted for. #IToldYouSo.

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