The case for increasing corporate taxes

Please take a look at this chart and follow the link to a great blog post on Felix Salmon. This highlights how low corporate income taxes are as a percentage of total corporate profits. As we head into crunch time on the budget supercommittee, I think its beneficial to realize how low taxes (for corporate and personal) are at this point in time. We currently are receiving tax revenue of roughly 15% of GDP and paying expenditures of 24-25% of GDP, which accounts for our huge deficit.  Long-term averages for both revenue and expenditures are roughly 18.5%.At this point in time, the right only wants to focus on spending cuts. This is ignorant due to the fact that it will be very difficult to keep spending at 19% or below as the baby boom moves to retirement age and cost of retirement and healthcare increase. Like it or not, it is almost impossible to imagine a situation in which the budget is balanced unless taxes are increased.


http://blogs.reuters.com/felix-salmon/