Higher corporate tax rates encourage business investment.

Most of the final round has been devoted by my opponent to address my argument that pre-tax money (EBIT) will be less in a high tax regime. By doing this he has tacitly conceded that if my objections are valid, they represent a flaw in his argument.Let us go through each of his rebuttals one by one...Contention #1: More money has to be paid to governmentMy opponent argued that the tax has to be paid after this money is calculated. So this money should be same. What he has failed to understand is that more money has to be paid by everyone, including the suppliers of the company. As a result the suppliers will increase there price leading to higher cost. Similarly employees too have to pay a larger tax. This may force the company to increase compensation. All these taxes will be reflected in the final sales price of the output. Higher sales price will decrease consumption leading to depressed economy and lower pre-tax profit. What we need to understand is that tax is not decided after everyone has made the money. The tax rates are known from start.Contention #2: Economies with less tax regime will be more economical thus out-competing the countries with more tax.My opponent has declined to consider this point arguing that this concerns international trade so it is irrelevant. I would like to state that those who believe international trade to be irrelevant are headed for extinction. Suppose a company loses out its costumers since its foreign rivals (who enjoy less tax) out compete it. Let me suggest that the company will have less EBIT because of less revenue.Contention #3: Companies will be tempted to invest in economies with lower taxes, thus slowing down the whole economyThe rebuttal was that there is no tax incentive to do so. However it is possible that the CEO may choose to forgo some tax incentive to invest in an economy which has a low tax rate and more growth as that will be more beneficial in long term.We can conclude:Low tax rate: Lots of money. Some is reinvested. Some is taken as profitHigh tax rate: No money! No reinvestment! No profit!My opponent has raised an interesting objection. I had posted a link to a research paper which he has acknowledged to be 'accurate and insightful'. However as per him the paper is all about 'tax cuts vs. increased government spending' and not about 'low tax vs high tax'. When government charges higher taxes, it typically increases its spending also. 'Increasing government spending' is usually synonymous with 'high tax regime'. Thus this paper is highly relevant.In the last round, my opponent has provided a link to a book authored by a trade union economist. In this round he has decided to refer to an article written by a fiction writer![1]In this debate the voters have to decide whether they support a theory being argued by fiction writers and trade union economists but being contradicted by studies carried out by respectable and independent researchers.They have to vote for or against a flawed theory which even defies common sense.Vote Con.I would like to thank my opponent and wish him best of luck for future debates![1] http://www.larrybeinhart.com...