05-14-2016, 01:04 AM
Some comments:
Now the facts:
There’s no doubt that corporate income tax revenues have been falling as a percentage of GDP, as this chart from FRED shows:
![[Image: corptaxpercentgdp.jpg]](http://blogs-images.forbes.com/timworstall/files/2015/09/corptaxpercentgdp.jpg)
Why on earth would low interest rates lead to a decline in investment?? Even more curious, why would low interest rates be a barrier to the deployment of excess corporate cash??
And if US corporations are taxed with the "largest tax burden in the developed world," how come they can accumulate such excess corporate cash in the first place?
Quote:At 40 percent for combined federal and state business tax rates, the U.S. has the largest corporate tax burden in the developed world.
Now the facts:
There’s no doubt that corporate income tax revenues have been falling as a percentage of GDP, as this chart from FRED shows:
Quote:A second key reason for the business-investment slump is monetary policy. While this may not be the right time for rate hikes, ultra-low interest rates have led to financial engineering rather than the deployment of excess corporate cash for productivity-enhancing investment.
Why on earth would low interest rates lead to a decline in investment?? Even more curious, why would low interest rates be a barrier to the deployment of excess corporate cash??
And if US corporations are taxed with the "largest tax burden in the developed world," how come they can accumulate such excess corporate cash in the first place?