Friday, 27 December 2013

Higher tax paying companies appear to create more jobs

Laura Clawson in Lower corporate taxes don't mean more jobs has this interesting graph:
It appears that companies, at least in the USA, that pay higher taxes are also more likely to create more jobs. Some might argue this might be because large companies pay more taxes and employ more people than smaller companies. However looking at the graph, the "tax-shirking job-shedders" had larger profits.

Clawson makes the point:
If corporations paid 35 percent of their $1.8 trillion in 2012 profits as taxes, that would have accounted for $630 billion in revenue. Instead, large corporations paid less than 13 percent in taxes, according to the Government Accountability Office, and total corporate taxes came to just $242 billion. If even half of that gap was filled, the American economic picture would look a lot brighter.

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