Assistant Managing Editor of Economics and Business at TIME Magazine
Con to the question "Does Lowering the Federal Corporate Income Tax Rate Create Jobs?"
"[T]he corporate tax debate and the jobs debate are two separate things... America has the second highest corporate tax rate in the rich world. But most American businesses don’t pay it. The President is suggesting that the corporate tax rate drop from 35% to 28%. But few of the biggest US businesses are paying that rate right now; indeed, most are paying much less – 115 of the companies in the S & P 500 paid less than 20% in tax over the last five years. And 39 firms paid less than 10%... That gets at the key issue: Fundamentally, lower taxes aren’t the reason that businesses choose to invest or not... Consider the recently released Harvard Business School study looking at insourcing and outsourcing decisions among 10,000 alumnae who are running American businesses. The key reason for outsourcing wasn’t labor cost, but a combination of cost, proximity to market, and (most importantly) better worker skill sets abroad. In order for America to create jobs at home, we need to do the heavy lifting to reform education and develop workers who can do the sort of jobs businesses need them to do... Nobody ever stopped investing because of high taxes."