Quote:
Originally Posted by codfather
This is not how it works at all...
Products and services are based on supply and demand. Companies and businesses are responsible for providing these while maximizing profit. Lowering the corporate tax rate means a business retains more profit which can then be reinvested into the company. So you're right that tax rates don't influence demand for a product (directly at least, though indirectly this could be argued), but they do determine impact how profitiable a company is and where they spend their revenues (less to reinvest into the business because a bigger share of profit went to the government).
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Right, but if business can only be successful at a certain corporate tax rate, whatever the threshold is, then it would appear that the demand for whatever product that business is supplying is not all that stable. Again though, I do think that corporations should be responsible for paying taxes to support the infrastructure they are making use of and profiting from. Is 12% a fair number? Hard to say.