tag:blogger.com,1999:blog-6399730406480392183.post1335949151747093067..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: The Economic Impact of Lowering America's Corporate Tax RateA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6399730406480392183.post-84877345862714215552015-02-14T08:35:46.891-04:002015-02-14T08:35:46.891-04:00As you know it is exceedingly difficult to project...As you know it is exceedingly difficult to project dynamic effects on the economy from tax policy changes. One way to assess potential effects is to examine what happened to tax revenues the last time corporate rates were reduced.<br /><br />In 1986, when the corp tax rate was 49.8% ,corp tax collections were $83.8b. In 1988, when the lower rate was fully phased in, tax collections were $111.1b. By 1996 they were $190.6b. <br /><br />Thus, in 10 years corporate tax collections increased by 127% despite tax rates being reduced by over 10 percentage points--the exact scenario you argue is highly unlikely.<br /><br />There is no doubt that the individual tax collections have increased at a faster rate than corp collections. However, this is largely a function of the high corp rate and double tax on corporate profits. Due to these factors there is a tremendous incentive for the formation of partnerships and LLCs to avoid the corp tax. BeeLinehttps://www.blogger.com/profile/04065018970505964953noreply@blogger.com