Tag Archives: domestic production

Tax Plans Only Part of the Solution

As Trump (and others) talks tax-reform it is important to know that rate reductions, though significant, are only part of the solution. True, taxation often works to counter economic development, the rise of which (tax rates) follows growth in government which then trends toward economic deceleration; the facts are undeniable.

In order to trigger an economic resurgence it is insufficient to merely reduce “rates” as this action does nothing to address what occurs with the funds retained that would have otherwise gone to government coffers. The solution is to tether Corporate Tax Rates to a scale that is based on their investment in Domestic Productive Capacity and in the Technology Development that makes use of it.

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