Wednesday, October 12, 2016

Finally, a comprehensive plan to address income inequality and provide hope

This is from an article by Arthur C. Brooks of the American Enterprise Institute, which Google tells me is a conservative think tank.

"This requires a generational strategy to build an education system based on innovation, school choice and an emphasis on vocational training.  It means rewriting tax and regulatory law to stop discouraging domestic investment and squelching job creation, while also attacking corporate cronyism that gives special treatment to wealthy and entrenched interests.  It demands authentic compassion for people on the periphery of society."

I would add to that comprehensive tax reform that lowers our corporate tax rate to 15%, but does away with other tax expenditures that reduce the taxes below that rate for firms that benefit from such largesse.  The reason I support that is multi-national companies can locate jobs anywhere.  That is the level many other countries use to tax corporations.  If we make taxes neutral, the only influences on plant location will be costs, demand distribution and transportation costs from location to demand.  Taxes will not be a consideration.

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