Great article in The Economist if you have a subscription, but they quote another study that was conducted to determine the effects of corporate taxes on wages of their workers.
Now, for those of us who know that corporations, companies, employers and investment are good things that should be wooed into taking up stakes in our country so that jobs, investment, economic production and wealth may occur, this is no shock. Corporations employ people and are going to go where the lowest taxes are. This drives up demand for labor, and thus wages.
Pretty simple ecnoomics.
But for those on the left who deem corporations as "evil" entities that are to be taxed because (to quote Tim Robbin's from "Team America, World Police") "these American corporations are all like, they're um, like, all corporationy!" this should hit them upside their hallow heads and given them reason once again to retreat and desperately grasp for sounds reasons why exactly corporations are a bad thing.
I have not read it in its entirety, but one of the more interesting things the study does is compare the effect neighboring countries' corporate tax rates have on other countries. Surprise, surprise, the lower the tax rate in one country, the lower the wages are in a neighboring country.
Perhaps this is why Ireland is richer than most of Old Europe, and why the former Soviet Bloc will be asking itself in 30 years, "Uh, why did we join the EU again?"
No comments:
Post a Comment