Another Valid Reason To Raise The Corporate Tax Rate

President Biden's proposal to raise the corporate tax rate from the present 21% to 28% to help finance his infrastructure plan (it was 35% before the Trump tax cut) received a justification from a recent report from J.P. Morgan who opined that "Its Time For Corporate Taxes To Catch Back Up With The Rest Of The World."  And J.P. Morgan, a very large corporation itself, should know.  The reasons given by business and the GOP for the past corporate tax cuts are undercut by the Morgan report.

J.P. Morgan's economic research reports as follows:  (1)  The US should increase corporate tax rates to catch up to other world economies.  (2)  The US is more focused than other countries on raising tax revenue from personal income and housing.  (3)  Before the 2017 Trump tax cuts, it found US corporate tax revenues lower than the global average.  (4)  Relative to other economies, the US prioritizes raising tax revenue from personal income and property.  In other words, the current American tax system raises more from people's paychecks and real estate investments than from companies, compared to the rest of the world. (Note from this writer:  And to think the US is the most advanced country in the world)  (5) Furthermore, dating back to 2000, revenues actually collected from American corporate taxes represented about 2% of the GDP versus a 3% average globally.  It reflects a complex system of exemptions and deductions embedded in the US tax code that reduces the corporate tax base and results in corporate taxes contributing a much lower share of total tax revenue in  the US than elsewhere.  (6)  And after the Trump tax cut the percentage fell to 1% of GDP, which explains the American reliance on taxing personal income and housing.  (7)  The US stands out as having the highest share of revenue from personal income (both labor and goods investment) across the economies in the study.  (8)  So called ordinary people account for a greater share of tax revenue in the US than elsewhere.

The report refutes the GOP and the business community's fairy tale that American companies need corporate tax reductions to be competitive in the world.  It also confirms what the average American knew long ago, that corporations do not pay their fair share of taxes.  And no one knew it all better than any one else than Politidose, the democratic party and especially former President Bill Clinton whose administration raised corporate taxes and his administration had the greatest economy in every category.  The Reagan, Bush 43 and Trump administration did not even come close and all three cut taxes for corporate America.  But all three did give the country an economic recession.  

The sad part of it all falls to the news media who promoted the republican talking points about how tax cuts for corporations were needed when they were aware of the past failures and the lies.  But PolitiDose was there over the last 9 years talking about those failures.  The media also let slide just how effective President Clinton's policies and plans were without corporate tax cuts.  

So now the future is in the hands of President Biden and he is well aware of the past failures of those tax cuts and that corporate America is not paying their fair share.  He is asking them to  do so now at a critical time for the economy.  The President, with his experience also knows that understanding the mistakes of the past is the key to a better future.  And we Americans do not want our future to look like the failed past.

This commentary written by Joe Lorio

  

  

 

Republican Opinion Writer Rich Lowry Continues His Mis-information and Dis-information Campaign With Commentary

 Lowry can not bring himself to write the truth even to his own supporters and continues his mis-information in a commentary published in the New Orleans Advocate dated 4/7/21 titled, "Biden in big leagues for big spenders."  Lowry's statement that Biden is spending jaw-dropping amounts that would have been unimaginable prior to the pandemic and are still shocking even now, is a fairy tale.  

He goes on to try and relate Biden's $1.9 trillion COVID relief package and the proposed $2.3 trillion infrastructure bill as being almost equal to Trump's fiscal 9/30/19 year spending of $4.4 trillion but is silent on the fact that Trump's $4.4 trillion spending spree was at a record level.  And of course Lowry did not mention at all that Trump's fiscal year ending 9/30/20 federal spending under Trump hit another record spending high of $6.5 trillion.  That was up 58% from the previous year Lowry quoted.

So it was Trump's spending of $4.4 trillion that was not only unimaginable and jaw-dropping before the pandemic, but never done before in the history of the U.S.  The record shows that the Trump administration was the first ever administration to have a four, five and six trillion dollar spending budget and that in the last 40 years, it was the Reagan, Bush and Trump administrations that had the largest increases in federal spending.

And when Lowry wants to talk about Biden's proposed spending its not even close to Trump's fiscal year 9/30/20 spending of $6.5 trillion. (which is the latest full fiscal year to compare)  Is it any wonder why Lowry never mentioned Trump's $6.5 trillion spending spree in his article???  Its Lowry and the GOP's way of dis-information on federal spending and debt because it is their party who are the big league spenders and why they are incapable of telling the truth.

This commentary written by Joe Lorio

George Will's Opinion Column Full of Contradictions.

 Republican opinion writer George Will never seems to tire about his own contradictions.  The latest published in the New Orleans Advocate of 4/6/21 titled, "Biden and progressives hypocrisy about tax increases" Will opines the long standing republican mantra that raising corporate taxes to finance spending on the federal level such as the President's infrastructure proposed legislation should be financed instead by money creation or borrowing.

Of course borrowing money means deficit spending and debt, something Will and the republican party say they are opposed to.  Which contradicts the republican record of deficit spending and debt for the past 40 years.  Will knows that but just turns his head and looks the other way.  Will's statement that with "NO CORPORATE TAXATION" foreign countries would rush to invest here.  A statement not supported in fact.  But Will says "WISE PEOPLE" favor a corporate tax rate of zero.

The secret to understanding Will's comments points to the fact he could not talk or articulate about the Reagan, Bush 43 and Trump tax cuts for corporations and any positive impact they had on those administration's economy.  Nor did he mention how the country and its people did much better under the administrations of President Bill Clinton and Barrack Obama who did not cut taxes for Corporations.

And Will did not  mention how the Reagan, Bush 43 and Trump administration gave the country an economic recession despite the massive tax cuts.  And he was not about to mention the fact that every republican administration in the past 100 years gave the country and its people an economic recession.  

The record of the republican party concerning tax cuts for corporations, the economy, job creation, deficit spending and debt has been one great failure.  Their failed ideology extends to not understanding consumer spending accounts for 70% of the economy and having good paying jobs is what fuels consumer spending.  The democratic party understands that and that is where their policies and plans are directed.  

Will knew he could not write anything of interest about the tax cuts of Reagan, Bush43 and Trump to try and prove his support for zero taxes for corporations.  He also knew he could not write about the nations economic well being under President Clinton who raised corporate taxes and the nation did better in every economic and fiscal category and far out paced those republican administrations in job creation.  Corporate investment in plant and equipment even did better on Clinton's watch.  The republican's corporate tax cuts were supposed to be a boom for corporate investment in plant and equipment, but the boom took place on Clinton's watch.

The middle class are the only ones who are paying their fair share of taxes and those taxes could be lowered if all the tax breaks and loop holes for special interest and business would be eliminated.  And when republicans try to justify that companies like Amazon who pay no taxes, one can understand why their tax policies favor corporations.  Will could not even articulate how the most recent tax cuts for corporations under the Trump administration was beneficial to the U.S. economy, job creation, reducing deficit spending and debt or how American companies moved their overseas operations back to the states.  Nor did foreign companies flock to move their operations to the U.S.

The ideology of "TRICKLE DOWN  ECONOMICS" is still alive in the republican party and Will's culture despite its failures.  And there fore the future under President Trump's 4 year administration was like the failed past of previous republican administrations.  The future of  the Clinton years were much better than the 12 years of Reagan/Bush41.  The future of the Obama years were much better than the previous 8 years under Bush 43.

And the future under President Joe  Biden will be  much better than the past 4 years under President Donald Trump.  And the real story is still, those who understand the mistakes of the failed past will be able to create a better future for America and its people.

This commentary written by Joe Lorio

  

  

Job Creation and Unemployment for March 2021

 The U.S. Labor Department reported the U.S. economy created 916,000 jobs in March and that the unemployment rate fell to 6% from 6.2% in February.  It was the best job creation month since August 2020.  The report also said February's job creation was adjusted upwards to 468,000 from the 379,000 reported in February's report.  March's manufacturing grew to its highest level since 1983 and the consumer confidence index was positive.  Job creation for February and March exceeded the number of jobs created in the previous four and half months.

There are still 8.4 million jobs that have yet to return to the economy since the recession began but February and March job numbers along with the stimulus and vaccine being administered are positive signs of an ongoing recovery.  Consumer spending is also being increased by the public.  The Labor Department is taking all those issues into consideration for their projections.

What is going on is a change in the government's economic policy and plans to deal with an economy badly damaged that is turning the corner but still in need of government attention for much larger gains and sustainment.  The President's latest stimulus package and his recently proposed infrastructure legislation are important for a continued growth in the economy.  The virus shots are being administered and increased and is also an important element in putting people back to work and opening up the economy.

The negative voices of the GOP and the so called conservative media are so out of touch, obstruction and opposition are all they have left.  But the American people will remember their lack of governing the past 4 years and the mess they passed to the present administration.  The Biden administration faces a tough situation not of their own making but democrats know how to govern and face the issues with policies and plans that work.  And that is what the Biden administration is doing.  The negative voices will continue but the mature people in the Biden administration will deliver for the benefit of the country and its people. 

And when it takes place, you will have read it here in PolitiDose, your daily dose of political commentary.

This commentary written by Joe Lorio