OPINION: Raising taxes on businesses is not the answer
American corporate federal tax receipts reached its zenith in 1944 America, providing a whopping 25% of tax revenue.
We needed it. We were in the midst of fighting World War II. We were counting on Ford, Boeing, and other corporations to outbuild the Axis and the federal contracts were huge.
By 2017, corporate America had long ago adjusted to one of the highest corporate rates in the world by offshoring their businesses. Though the 2017 federal rate of 35% had come down from a high of 52% from 1952-1963, only 8.33% of tax receipts were corporate and had remained there +/- since 1980.
With the 40% reduction starting in 2018, the news was out: Investing in America wouldn't place you at the disadvantage it had since WWII.
What followed was a historic reinvestment in America of $1.6 trillion over the ensuing three years.
Raising corporate taxes won't provide an increase in tax receipts over time. Companies will quickly shift back to offshore remedies.
Employment, wages and investment will shift momentum.
Write your congressman. I just did.
Wayne Mayo is a Scappoose resident and small business owner.
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