Tuesday, July 4

Why taxes on companies are bad for workers

Most [researchers] agree that workers do, in effect, pay some of the tax formally levied on companies. One route is through lower saving. Corporate-income taxes, like all taxes on capital, make saving and investment less attractive. Lower investment means a smaller capital stock, less capital per worker and hence lower wages. Several studies have found a negative link between corporate-tax rates and investment.
Not to mention the government generally doesn't allocate the money very well.

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