Corporate Tax Problems

At some point during their campaign, all the presidential candidates propose some sort of tax cut. Some of which the public like, others the public doesn't like. According to N. Gregory Mankiw's article "The Problem with the Corporate Tax" Senator John McCain has too many ideas and one is almost laughable. His idea of a "gas-tax holiday" has received the most attention so far however many economists think it best to raise the tax on gas in hopes of resolving problems from global climate change to local traffic problems. On the other hand McCain does have one idea that just might be a good one, cutting the corporate tax from 25 to 35 percent. Why offer help to someone other than your voters you may ask? Although many voters don't know this, cutting the corporate tax will in fact benefit them. "A corporation is not really a taxpayer at all. It is more like a tax collector.' Therefore a cut in the corporate tax boost after-tax profits and stock prices, as well as lead to more capital investment. More investment would lead to greater productivity. Greater productivity would lead to higher wages for workers and lower prices for customers. Other factors go into it as well but for the most part every body seems to benefit from the idea. To learn more about McCain's tax-cut ideas or to learn more about the outcome of a corporate tax cut visit the following link. http://www.nytimes.com/2008/06/01/business/01view.html?_r=1&oref=slogin