Dear Next President,
People say we should increase corporate tax income. They say that because companies' profits have been their highest in 61 years because of the increase in corporate tax rates. But the US unemployment is also the highest in the world because of the increase in corporate tax income.
But, Next President, if we could lower corporate tax income, companies could really be helped by the decrease. They could use that extra money that they don’t pay for the taxes to hire more workers. Also, the money from the decreased taxes could be used to pay the workers that they hired more.
In 2011, the unemployment rate was at 8.9% which was almost the highest it has ever been in the US. That was concerning, but also in 2011 the US’s revenue average was at 1.2%, which was the lowest it has been since 1950, which is really scary. It is shown that if we could lower corporate tax income rates, it will result in international investment in the US, according to a study done in 2006. When we get invested internationally, it is called foreign direct investment. That is when a business in one country is being independently owned in another country. So, when businesses invest internationally in some US businesses, it is shown to decrease the corporate tax rate by 10%, which would be good for the US. That money produced by the decreased taxes could be used to expand the business's work force or their companies.
High income taxes create uncertainty for companies and their workers. “Lowering corporate tax income creates a certainty premium”, says Brian Moynihan of Bank of America. It will allow workers to keep their confidence by dealing with problems like, “How much will I get paid?” or “Will I still be working here?"
If we could lower corporate income taxes, businesses could really benefit by it. It would increase jobs in the US and lower all the uncertainty for all the workers at the company. Also, if we could lower the tax rate, it would help with the unemployment, which could help the whole country get better. So, Mr. or Mrs. President, this matter is really important and it could help the US get better as a whole country.
Thank you, Next President .
Evart Middle School