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Lower taxes for businesses..


Prelewd
11-15-2004, 10:57 AM
For my English class in college, I have to write a proposal on any subject that I want. My thesis is something like this:

Reduction of taxes on Seattle corporations such as Boeing and Microsoft will keep them in Wa and in turn benefit our state economy.

For backing, I say that by reducing taxes on corporations and other businesses, they will keep their headquarters and plants in state. This keeps jobs in state, and allows them to grow by them not having to pay as much taxes. Effectively, this lowers the unemployment rate in the state and also brings more people looking for work to Wa.

Another benefit of this is that it helps the service industries. Low paying service jobs (think fast food workers) can/will recieve better pay when companies do not have to pay as much tax.

I ask those intelligent minds in this forum if they agree or disagree with the above statements and why? I am trying to get a direction for where to go with this paper, and your help would be greatly appreciated.

Thanks,

Barrett

TexasF355F1
11-15-2004, 11:45 AM
That is true. From what I've learned anyway. Lower taxes for businesses, means the higher likeliness that more people can be hired.

YogsVR4
11-17-2004, 07:48 AM
Its been proven over and over again that lower taxes generate more revenue in the long run. Clearly, there is a breaking point where the tax rate wouldn't generate enough revenue, but no state (bar the ones with zero income tax) has gotten that far. You may want to look up Steve Forbes as he's detailed out how lower taxes on businesses add up to increase in payroll and a rise in wages.

Its funny to read about people complaining that businesses don't pay enough in taxes. Apperently, they don't realize that whatever that tax amount is, is factored into the cost of the goods/services being provided. In the case of businesses, taxing is a zero sum game. The consumer pays that tax.













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TexasF355F1
11-17-2004, 09:21 AM
Yes, look up info on Steve Forbes. The mans pretty much a business genius.

Prelewd
11-22-2004, 12:41 PM
Alright, thanks for the info guys.. I'll check out Steve Forbes. I'm still in the process of writing this proposal, so if anybody has anything else to say, it'd be appreciated.

2strokebloke
11-24-2004, 01:57 PM
Another benefit of this is that it helps the service industries. Low paying service jobs (think fast food workers) can/will recieve better pay when companies do not have to pay as much tax.
This part of the equation is really very iffy. Knowing the common trend of business today, it's unlikely that the money saved by the company through lower taxes would be passed on as either better pay for workers, or as lower prices to consumers. It would just add up to bigger profit for the company.

YogsVR4
11-25-2004, 08:28 AM
This part of the equation is really very iffy. Knowing the common trend of business today, it's unlikely that the money saved by the company through lower taxes would be passed on as either better pay for workers, or as lower prices to consumers. It would just add up to bigger profit for the company.

If that company is the only one in its market space. Competition for employees is the most dynamic wage driver. Competition is also the best way to lower prices. Both of these explain the high cost of running a government agency and the high wages/benefits that the employees receive.













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2strokebloke
11-29-2004, 01:29 PM
Unless, of course these employees are doing basic labour, in which case there's an endless supply of people no matter what your competition is paying (they can't hire everybody).

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