The Instigator
tcow2970
Pro (for)
The Contender
W_Q
Con (against)

American Corporate Tax Rates Were Too High Before Tax Reform

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Voting Style: Open Point System: 7 Point
Started: 1/12/2018 Category: Economics
Updated: 6 months ago Status: Debating Period
Viewed: 209 times Debate No: 106638
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tcow2970

Pro

"The American People are not under taxed, the government in Washington is overfed." It is because Ronald Reagan pinpointed the issues with the overtaxing in America I believe that the corporate tax rates (before the tax cuts) were too high. To hopefully convince everyone viewing this debate I provide some points.

First, we had some of the highest tax rates in the world
NPR News in 2017 found the claim that the United States had the highest corporate tax rates in the world to be "generally true". There are even some instances in which corporations pay upwards of 50-60% of their profits. If that doesn't scream borderline socialism / government abuse, I don't know what will.

Second, the super high tax rates cause international outsourcing
The Balance in 2013 found that United States companies have 14 million employees overseas in jobs that could be employing Americans. Why? Because of my first point that corporate taxes are the highest in the world. Congressional Democrats from the ways and means committees reported that at least 47 major corporations have moved overseas in the past decade alone. Those are millions if not billions of dollars and thousands upon thousands of jobs. How do we bring them back? Lowering the corporate tax rate.

Finally, outsourcing jobs causes unemployment which leads to more crime
This is a pretty self explanatory point, but the example I will be using is the rust belt. The place that used to be the manufacturing hub of America but is now a crime ridden ghost-town. Places like Chicago, Detroit and Pittsburgh all used to be flourishing economies in America that were known for being vibrant and industrial revolution havens. Now, due to the outsourcing of jobs, their unemployment has skyrocketed and their crime rates have skyrocketed.

Thanks for reading!
Format for debate
1. Opening Cases
2. Responses to opening cases
3. Final addresses
W_Q

Con

Thanks to tcow2970 for initiating the debate.

Opening statement will be short, as the nature of the debate demands that pro must uphold the proposition that Taxes were indeed *excessively high* prior to tax reform.

Government Spending
Over several decades, overall spending as a percent of GDP has followed a positive trend, as noted by reference [1]. That being said, to supplement such increased levels in spending, we either (a) raise taxes, or (b) accept higher levels of national debt. Option b) is undesirable because long-term debt does play into the devaluation of US treasury bonds, which would eventually reduce the ability to defecit-spend your way out of a recession.

Thus, we are left with option a). Suggestions could be made to decrease spending, but such discussion is outside of the scope of this debate.

Effectiveness of Reducing Corporate Taxes
As I am not intending to prove that lowering the tax is effective, but rather that the taxes prior to the tax cut are not excessive, I am not required to advocate for any specific position. Instead, I intend to question the impact a reduced tax rate will have on the general economy.

Commonly it is said that lower taxes often produce a 'trickle-down effect' - that is, essentially when corporate taxes are lowered, they are better able to finance the cost of a larger number of workers at higher salaries. However, such logic has never actually been verified in practice.

It is also important to note that corporate income taxes aren't fixed at the 35% number often thrown around by Republicans. The corporate income taxes rates also follow brackets. [2].

References
[1] https://blogs-images.forbes.com...
[2] https://www.thebalance.com...
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