Very little progress has been made on the subject matter since "PolitiDose" commentary of July 23, 2008. (12 years ago) That commentary explained how corporate America has failed its obligation to the country and its people and especially its responsibility to close the wage gap with its employees. It also explained how government regulations to produce better mileage automobiles was the leading force behind auto manufacturing and not from industry innovation itself.
And as of this day, the Reagan, Bush 43 and Trump tax cuts for corporate America (social welfare) has not been an incentive for corporate America to innovate. Those three tax cuts reduced the corporate tax rate and those of the top earners approximately 59% and now Trump's economic adviser Larry Kudlow says the corporate tax rate should be cut another 10-1/2% from the present 21%. So here we have the republican party's toxic thinking. The average person on welfare wants to stay on welfare instead of working, but social welfare tax cuts for corporate America will create jobs and bring jobs back to America. That is OK with republicans even though its a fairy tale. Corporate America uses tax cuts to enhance their own companies wealth and is not used for innovation or employee advancement.
With 38 million people unemployed (according to the latest report from the U.S. Labor Dept.) what type of innovation is taking place with corporate America to put those people back to work ASAP in line with regulations to reopen? And what about the back pay to the employees they laid off? One can bet their CEO's and executives will still be granted huge bonuses at the end of the year. Trump admitted the failure of his tax cuts last week when he said he wanted all PPE equipment manufactured in the U.S. so as to have on hand for the next pandemic. Of course, corporate America had time to do that with Trump's 14% tax cuts in 2017 and have the equipment ready for the present pandemic. Corporate America, the country and its people did better with innovation on President Clinton's watch when he increased the corporate tax rate from 34% to 36%. And progress was evenly distributed in all sectors and especially the ones that count. Lower unemployment, record jobs created, record economy, balanced budgets and surpluses, pay down on the national debt, lower poverty rate, corporate America and the stock market did exceptionally well, largest increase in middle class wages in the last 40 years, largest percentage increase in plant and equipment investment by corporate America in the last 40 years and so much more.
The bottom line has already been drawn in the last 40 years and now history tells us that corporate tax cuts do not create innovation, jobs or better economy, nor does it accomplish what the author's of tax cuts claim. It is simply a scheme to transfer wealth from the middle class to corporate America and those that benefit the most from the cuts. That is the republican ideology and their partnership with corporate America at the expense of the average worker.
This commentary written by Joe Lorio
