Corporate Taxes

Corporate taxes: to cut or not to cut?

While this election issue is prone to partisan spin, here's a balanced article in the G&M about corp taxes. Seems to be a favorite topic of economists since there's no right or wrong answer. They can write/publish ad nauseum to support their free-market or labour-economics hypothesis.

My lack of formal training won't dissuade me from wading into this debate. :) I think in our modern services based economy, corp tax cuts are not generating higher investment in "business" and growth in jobs. Rather, companies are turning higher profits into asset inflation. We have seen this clearly over the past few years in the banks spinning their corp tax winfall into CDO bubbles and massive exec bonuses.

More ancedotally, Teradata has been on an acquisition spree with recent profits, rather than increasing new hires or substantial raises. The latter would have the trickle down economic effect predicted by free-market guys.
So not surprisingly, I seem to be siding with the socialists again.