Ataxingmatter is one of the best blogs on the internet. Linda M Beale writes clearly and cites sources so you can go and read the details. As the blog name implies, she writes primarily about tax policy.
Below is clip from the December 3, 2013 post on lowering corporate taxes to create jobs in which she reviews various studies to answer the question of whether corporate tax cuts create jobs. Go read her entire post. It clearly discusses the folly of thinking that lowering taxes creates jobs.
Scott Klinger & Katherine McFate, The Corporate Tax Rate Debate: Lower Taxes on Corporate Profits Not Linked to Job Creation, Center for Effective Government, Dec. 2013
The study, for example, found that a supermajority (22) of the 30 corporations paying the HIGHEST tax rates created 200,000 jobs between 2008 and 2012, while only 8 of those 30 had any reductions in the number of employees. IN contrast, the 30 profitable corporations paying no or very little taxes in that period had an aggregate loss of more than 51,000 jobs--half created a few jobs and half reduced jobs between 2008 and 2012
A 2013 study by the U.S. Government Accountability Office found that large corporations paid on average just 12.6 percent of their 2010 profits in federal income taxes.1 Even when foreign, state, and local taxes were added in, the companies paid only 16.9% of their worldwide profits in [all] taxes in 2010. By contrast, small businesses pay an average tax rate on their profits of 19 percent, according to the Small Business Administration. U.S corporate profits as a share of the economy are at a 50-year high, yet federal corporate tax collections as a share of the economy are near a 50-year low. Id. at 2-3 (emphasis added).
Here in Wisconsin, we especially need to refute the idea that tax breaks for corporations create jobs.
