How Lower Corporate Tax Rates Would Spur Economic Growth and Reduce Unemployment
Author: Ilhan Meric.; Ira B. Sprotzer.; Gulser Meric.
Source: Volume 31, Number 01, Fall 2013 , pp.45-52(8)
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Abstract:
The United States has one of the highest corporate tax rates in the world. The authors in this article demonstrate that raising dividend and capital gains taxes with the Fiscal Cliff deal at the beginning of 2013 had a depressing effect on the stock market and adversely affected corporate investments, and show that it is possible to offset this adverse effect—and to encourage corporate investments, spur economic growth, and reduce unemployment—by lowering the corporate income tax rate.Keywords: double taxation; Fiscal Cliff agreement; dividend tax; and capital gains tax
Affiliations:
1: Rider University; 2: Rider University; 3: Rowan University.