Discussion Question Week 8 Econ

Essay Instructions:

Discussion Question 1 Please respond to the following: " Moral Hazard" http://www(dot)youtube(dot)com/watch?v=_SdtoKeFTi0 http://www(dot)youtube(dot)com/watch?v=HxPfJ0RpVaw http://www(dot)youtube(dot)com/watch?v=s7E0iVXura4 http://www(dot)youtube(dot)com/watch?v=QJqZDtVXPUU Robert Reich Corporate tax "reform" is high on the Republican agenda because the GOP's corporate patrons are demanding payoff from their investments in the 2014 election. Watch your wallets. Here are the four biggest right-wing whoppers about corporate taxes: 1. The U.S. corporate tax rate of 35% is one of the highest among advanced countries. True but misleading. The effective corporate income-tax rate – what corporations actually pay after all deductions, credits, and loopholes – is 27.7%, close to the average of all rich countries (27.2%). 2. Today's corporate tax rate is high by historic standards. Baloney. In the 1950s it was over 50%. 3. The corporate tax reduces corporate profits, which makes it harder for corporations to hire. Wrong. Corporate profits today are the highest they've been since World War 2 as a percentage of the economy. 4. Lowering the corporate income-tax would spur economic growth. Baloney. There's no relation between corporate tax rates and growth. In the 1950s and 60s, when the corporate tax was over 50%, the economy grew faster (at an annual average rate of 3.9%) than it has since the rate was reduced. Discussion Question 2 4 short but fascinating videos on President Andrew Jackson, as well as various U.S. founding fathers, on fearing the actions and corruptions of big bankers!!! Sound familiar to today!! 1 President Andrew Jackson and Big Banks--sounds like today!!!) --(from History Channel)- http://www(dot)youtube(dot)com/watch?v=Knf8KA5aAjw&feature=related 2 (Also Thomas Jefferson) --- http://www(dot)youtube(dot)com/watch?v=3cnItVN1Gk0 and 3 http://www(dot)youtube(dot)com/watch?v=H7yjfI19b7s 4 ( from HBO film mini series on President John Adams-- (Watch at the dinner table--George Washington, Thomas Jefferson- who had just returned from Paris, Alexander Hamilton, our first Secretary of the Treasury, and John Adams) http://www(dot)youtube(dot)com/watch?v=UrxKOO0nKwc **These are two separate discussion questions**

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Corporates tax rates
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Question one
Similar to human beings, corporations have moral duties and responsibilities. As such they also have legal rights and freedoms protected under the 14th amendment of United States constitution. Corporations should be provided protection against exploitation. The tax rate for corporations in US stands at 35 %. Though is a huge percentage it is considered consolidative since it has been calculated from the net profit of the corporation exclusive of all deductions of credit and loopholes.
It is moral the responsibility of corporations to make sure that they do affect positively the life of public. However most of the corporations are very reluctant in ensuring positive life of public. Most corporations are geared towards making policies that will only spur their growth at an exponential rate at the expense of the citizen. Hence it is very prudent for government to control by high tax rate to cater for the development for the sake of public.
Corporates ability to hire is not affected by corporates tax rates. The tax rate being computed from the net profit which is exclusive of payment wages. This indicates that tax rate and hiring are not correlated. More hiring is even believed to spur huge returns due to increased production. Lowering of corporate taxes cannot spur economic growth. It may even allow under production of companies hence shortage of goods and services. This would undermine moral r...

Updated on January 26, 2024

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Discussion Question Week 8 Econ

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