Letter: The problems with corporate tax
Biden to raise corporate tax: This is possibly the worst place to tax. What does a corporation do if the tax is raised? First, they may move their production overseas and eliminate jobs. Second, they may cheapen the product to increase profit. Third and most important is that they will raise prices to make more profit. This hurts the lowest income citizens the most and does not hurt the wealthy. Here is what I think happened over the last 20 to 30 years. Corporate tax was high so the corporations talked both Republicans and Democrats into passing trade agreements and made China a favorable trading partner — thus 3 million-plus jobs left America.
If it was my decision, we would have no corporate tax (since actually individuals pay 100% of tax since it just passes through corporations to the government). By having no corporate tax, we should require them to put 15% of an employee’s salary in the individual 401(k) so at retirement they have that plus Social Security.
Some companies are already doing profit sharing — I was lucky enough to work for a company that did that — but if all were required to do that and furnish health insurance, I think our country would be ahead.