Democrats know corporate tax reform will juice the economy. That's why they once supported it
Washington Examiner
Editorial Board
November 6, 2017
"Democrats are freaking out about the Republicans’ tax cut bill, and for good reason.
"While the Democrats and their friends in the media will say the cuts in corporate taxes are a giveaway to big business, this is a transparently disingenuous critique. We know that because Democrats, when in charge, proposed their own massive cuts to the corporate tax rate, which gives away the game.
"Why would Democrats want simplification and rate reduction in corporate taxes when they are in charge, but oppose it when Republicans are in charge? Because they know it will work.
"President Barack Obama in 2012 rightly lamented that, 'our current corporate tax system is outdated, unfair, and inefficient.' He cursed that the U.S. has 'one of the highest tax rates in the world,' and said the tax code facing corporations is 'unnecessarily complicated and forces America’s small businesses to spend countless hours and dollars filing their taxes.'
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"Simplifying the code will make the economy more efficient in a few ways. First, it will reduce compliance costs (sorry, accountants!), thus reducing dead-weight loss. More importantly, a simpler code will have distortions. Companies big enough to hire expensive tax lawyers and lobbyists and flexible enough to game the tax code do exactly that. That means they’re not investing according to what’s most economical or where there’s the most demand. Instead they are following the tax code.
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"The Democratic Party, already in shambles after Obama and Hillary Clinton, cannot afford that sort of prosperity."
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