Corporate Tax Should be Lowered

Your main argument encompasses the negatives of a lower Corporate Tax paired with the ability to create loopholes in taxation and end up paying very little either way. In this debate, I never stated that we should keep these loopholes. This is strictly based upon the assertion that corporate tax is entirely too high, and that we should lower it. Evidently, lowering corporate tax, making a much simpler tax code, and then creating a conjunction in which no company under any circumstances can skip taxation, would create a much better system. In the end, a nation that focuses on free trade would slash the corporate tax rate completely, and keep it at a stable 0. If government also cuts their own spending, this would be easily affordable for the United States. On a competitive level, however, we do have the highest corporate tax rate among other industrialized nations. Whether many of our own companies pay this amount is up for another debate, but the stable fact is that we have the highest corporate tax. We definitely should focus on closing up loopholes, but paired with a lower tax rate, as these loopholes are the only reasons why the remaining corporations have stayed in our nation. There are many benefits to a lowered corporate tax rate: 1. Cutting the corporate tax rate will promote higher long-term economic growth. 2. Cutting the corporate tax rate will improve U.S. competitiveness. 3. Cutting the corporate tax rate will lead to higher wages and living standards. 4. Cutting the corporate tax rate will boost entrepreneurship, investment, and productivity. 5. Cutting the corporate rate lowers the tax burden on low-income taxpayers and seniors. 6. Cutting the corporate rate will lower the overall dividend tax rate and taxes on capital. 7. Cutting the corporate tax rate can attract foreign direct investment (FDI). 8. Cutting the corporate rate would lead to lower corporate debt and reduce the incentives for income shifting. 9. Cutting the corporate tax rate can reduce compliance costs. 10. Cutting the federal corporate rate can help the states compete globally.[1] You have also stated that corporations benefit from publicly funded organizations, such as roads, education systems, police officers, etc. Evidently, this is true. The argument here is that corporations could do the same in other nations, but people could not. In order to have safety, the government must devote funds to public organizations, which pairs with corporate likeability. Making an argument centered around the complete obliteration of the corporate tax without the complete deletion of tax loopholes will ultimately fail. For one to make an argument such as this, that person will ultimately need to understand the reason as to why there are lobbyists and tax loopholes. Our high tax rates ultimately effect corporations, and cause them to ship both jobs and capital overseas, into nations such as China or India that have much lower tax rates and much easier loopholes. Instead of basing our ideas on the general morality of corporations, which does not exist, we would create a comprehensive tax system that eliminates deception and incentivizes corporate investment. Being a Libertarian, I oppose all taxation plans, but I see most as realistically needed for the government to properly function. In the case of business, there should be little to no taxes, including both income and corporate tax. Business is based upon profit, and the desire for more profit, which people associate with the term greed. A government created legislation that undermines this desire for profit will be met by a dissociation of that profit base and relocation to a less restrictive nation, such as China and India. The three largest expenses of a corporation are wages, taxes, and supplies. As supplies and wages are necessary for the continuation of the company as well as employees desire to work in said company, removing those would be unrealistic. On the other hand, a relocation of taxes, whether based upon net revenue or net profit, would drastically impact interest of corporations as well as ability to function on a larger scale. You have previously stated that many corporations do not require a higher level education, which is wrong. According to the following source [2] (Link will be stated below), our job sector’s need for education has increased dramatically throughout the next 40 years. In accordance with this information, your argument creates the illogical fallacies that state funded education is required for these corporations to function. This may be true if you take in account the entire world, as there will be nowhere else for the corporations to go, but in the matters of the United States, which is our debate’s primary focus, state funded education will benefit the people more than the corporation. While you may believe that tax cuts will benefit the corporation more than the people, it is still clearly evident that lower taxes always equates to more incentive. We would effectively eliminate all need for tax lobbyists and special interest if we created a comprehensive tax system, or got rid of corporate tax all together. A small fraction of our government spending is created by corporate tax, which only alienates corporations and creates a disparity between economic centers in their need for unlegislated competition. In accordance with your previous statement, most of these retail jobs are held by the least educated in our society, and whether they are uneducated due to the governments failures or due to their own laziness and lack of willpower is up for discussion. Sources: [1] http://taxfoundation.org... [2]https://cew.georgetown.edu...