Higher corporate taxes don't hurt job creation, a new report by the Center for Effective Government finds. If the history of
higher corporate tax levels and solid economic growth in the United States doesn't convince you of that, the facts on
corporate taxes and job creation today should help:
- 22 of the 30 corporations that paid the highest tax rates (30 percent or more) on their reported profits created almost 200,000 jobs between 2008 and 2012. Only eight of the 30 firms paying high tax rates reported reducing the number of employees between 2008 and 2012.
- The 30 profitable corporations that paid little or no taxes over three years collectively shed 51,289 jobs; half of these low-tax firms created some jobs, and half shed jobs between 2008 and 2012.
- Lowe’s, the nation’s second-largest home improvement store, paid over 36 percent in taxes on reported profits of $9 billion between 2008 and 2010, and hired an additional 28,820 employees between 2008 and 2012.
- Verizon, the nation’s largest wireless provider, reported $32 billion in U.S. profits between 2008 and 2010, yet received tax refunds totaling $951 million and reduced the number of employees by almost 56,000 between 2008 and 2012.
If corporations were paying more taxes, it wouldn't just
not hurt job creation, it would be good for the economy as a whole. Right now, corporate taxes account for an absurdly low share of federal revenue—raising that revenue level would mean more money for things like fixing bridges and train lines and educating kids. And, yes, if you're one of the small share of people who actually cares about deficit reduction, it would reduce the deficit. In fact, if corporations paid 35 percent of their $1.8 trillion in 2012 profits as taxes, that would have accounted for $630 billion in revenue. Instead, large corporations paid less than 13 percent in taxes, according to the Government Accountability Office, and total corporate taxes came to just $242 billion. If even half of that gap was filled, the American economic picture would look a lot brighter.