Obama after first 100 days / Tax Increase
Over at Facebook, C.Sven posted an interesting link about Obama Proposes $190 Billion Tax Increase on Companies (Update4)
I thought it was an interesting topic for discussion. What would you think this rise in tax would bring about ?
I am also wondering about the manufacturing industries. I would have thought a lot of US MNCs may have to cut down their global scale since the tax comes in. True that you can evade tax, but I doubt they could totally evade it, so higher operational costs to these US firms.
What I am worrying is that banks will suffer. It really looks like it. If double taxation really kicks in, companies and individuals have less to put in the banks. Isn’t that directly effecting the whole economy worldwide ?
Maybe I am wrong to say this, but I thought they should keep corporate tax low and make the companies do more hiring. What I see is that tax of this kind is going to reduce employment which will add to the viscous cycle of less spending etc.
