May 10, 2011

Another Day, Another Budget Proposal

As more and more legislators pull out new magic budget solutions, none of them are addressing the nations biggest budget concerns – and destroy jobs in America, says Veronique de Rugy, senior research fellow at the Mercatus Center at George Mason University.

Today’s iterations raising corporate taxes may be politically palatable – butmake no mistake said economist de Rugy, corporations don’t pay corporate taxes, workers do.

Studies from research, including the one by William Randolph of the Congressional Budget Office, show 70 percent of corporate taxes fall on the shoulders of workers.

“Higher taxes for corporations are not paid by wealthy shareholders,” said de Rugy. “Workers end up paying for this in lower wages.”

In addition, the tax on international companies who earn money overseas also kills jobs in the U.S. because  in order to avoid the punitive corporate rate companies do not repatriate those earnings in America.

“Higher corporate taxes make us less competitive against other countries,” she said. “This means fewer jobs for Americans.”