Taxes or Business

                In modern politics  there is one debate which conservative and liberal views have fought over and will continue to fight over for the foreseeable future, Tax and business.  There are valid points to both sides of the argument, a country without taxes especially on one of the greatest sources of government income would have to compensate with heavier taxes on other sources however, a country with an incredibly high corporate tax would render the nation an enemy of potential business. Thus limiting potential domestic and economic growth.

                The United States is the undisputed king of global industry and comprising a quarter of the global GDP contains the largest names in business.  These businesses and huge industries are what allowed the States to become the manufacturing power house of the 40’s and then the pinnacle of capitalism during the cold war.  Recently though a new trend in the corporate tax rate has arisen and America now holds the highest corporate tax rate in the developed world.

                One has to wonder, firstly why would America elect to place such a strain on the corporate world when the economy and unemployment issues are fragile enough. The new weights congress has assigned to corporations in America have and will continue to force companies overseas. With the loss of these companies the unemployment crisis in America can only continue its trajectory and place a tighter grip on an already dwindling job market.  What we have to ask ourselves is this, “Do the ends justify the means?” If congress continues to place corporate taxes on these companies they could find offices and operate on foreign soil. In actuality this is the economically sensible thing to do, moving the majority of jobs overseas in order to reduce the amount of profit taxable by the American government makes sense. With huge tax rates and instant global communication there isn't any reason to stay. The question is, why would America elect to do so?

                Personally I hold little faith for  an increased corporate tax rate in the present state of the global economy. Such an economic powerhouse should elect to stimulate the economy through a lowered tax rate and promotion of business rather than injecting currency into circulation and increasing the corporate rate. The creation of jobs in the American economy should be the top priority at the moment. I fear further stress on corporate players will drive these companies to foreign soil and further the American crisis.