Corporation tax cuts fail to create jobs, says TUC

[xchrom]

http://www.guardian.co.uk/politics/2011/may/28/corporation-tax-tuc-job-creation

Lower corporate tax rates may not boost economic growth, a new report suggests, taking issue with a key principle at the heart of the Tories' economic policies.

The report, by chartered accountant Richard Murphy on behalf of the Trades Union Congress, suggests the correlation between lower corporate tax rates and higher economic growth is weak at best. "Low corporate tax rates reduce revenues, but fail to create jobs," the report says.

The conclusion is based on an analysis of the corporation tax rates of OECD countries between 1997 and 2010. "Analysis of the correlation between tax rates and growth in OECD countries (excluding the top and bottom outliers) finds that, at best, the relationship between the two variables is weak," Murphy concluded.

The coalition has cut the headline rate of corporation tax in order to boost growth. It was 28% when Labour left office and will reach 23% by 2013. In the last budget, the government said: "The reductions in the rate of corporation tax and healthy financial position of UK companies in aggregate should help support further investment growth."

[somone]

1. Corporations are sitting on a historic shitload of cash

[mwb970]

2. "Low corporate tax rates reduce revenues, but fail to create jobs,"

Isn't this the republican platform? They don't want to create jobs, because Obama might get the credit. Similarly, reducing government revenue makes the crisis worse so they can blame the Democrats. And reducing corporate tax rates helps keep that Koch money flowing in.

It's win-win-win!

[xchrom]

3. well this is britain -- but i think it works with us just as much. nt

[rfranklin]

4. And they want plenty of desperate people begging for jobs...

which helps keep overhead low, low, low!

[bemildred]

5. Corporate tax cuts actually destroy jobs.

The historical evidence is quite clear these last 40 or 50 years, declining tax rates and fewer and worse jobs, meanwhile CEOs make out like bandits and corporations sit on hoards of cash, which they use for speculation and not industry.

[xchrom]

6. that & 'free trade'. nt

[txlibdem]

7. Gosh. It's almost as if we've all been *LIED* to...

I just can't imaging our elected officials doing that...
:sarcasm:

[xchrom]

8. ...

:spray:

[Cherchez la Femme]

9. BOMBSHELL, TONIGHT!!1!1!!!

:eyes: --or-- :rofl:

Ah, the choice between going crazy or laughing hysterically... USA! USA!1!

[mwb970]

10. In other news, water is wet. /nt

[saras]

11. And lobotomies fail to produce wealthy grandchildren

In another report, researchers found that getting a complete frontal lobotomy does not, in fact, guarantee that your grandchildren will become wealthy and successful.