Skip to content
Andrew Tobias
Andrew Tobias

Money and Other Subjects

  • Home
  • Books
  • Videos
  • Bio
  • Archives
  • Links
  • Me-Mail
Andrew Tobias
Andrew Tobias

Money and Other Subjects

$300 Billion Here And $300 Billion There, And . . .

April 14, 2021April 14, 2021

South Dakota’s John Thune — the number two Senate Republican — was on Fox News Sunday morning talking about Biden’s proposed $2.25 trillion infrastructure bill:


I think the tax increases that are included in here are something that would be very crushing to the economy.  You’re talking about increasing the rate from 21% to 28% or a 33% tax increase on businesses in this country who are looking to create jobs. . . .


There’s so much wrong with that statement.

Putting the top corporate rate halfway back up to the 35% it was under Bill Clinton would not “crush” the economy — in Clinton’s eight years, 18.6 million private sector jobs were created!  The economy did great!  And so did wealthy people, even though he hiked their personal tax rate as well.

The economy didn’t do terribly in the Fifties, Sixties, Seventies, and Eighties, either.  Remember?

Back then, the corporate rate was around 50%.

(Here’s a history of the corporate tax rate, with a table by year at the end; and here’s job creation over those years.)

Because corporate taxes are levied only on profits — and half a loaf is better than none — business owners try to make profits no matter where the rate is set.  New investments will be made, and new workers hired, if they promise profits.  Low rates won’t cause hiring if the employer doesn’t need more employees.

I do get that most big companies arrange things to avoid taxes — sometimes by going overseas.  But Trump’s cuts didn’t bring them back; and Janet Yellen has a better idea: instead of joining the race to the bottom, let’s fashion a global minimum corporate tax rate.  Ours is not the only government that needs tax revenue.

Redirecting $300 billion a year to infrastructure for eight years, as the President proposes, far from crushing the economy, will boost it.

It would be crazy not to make this investment!

Think of it like World War II, when no serious person argued against raising taxes and going into debt to win the war.  This time, we’ll be raising taxes and going into debt not to blow things up, but hiring millions of blue collar workers to build things that will last for decades and enhance our productivity, our health, and our prosperity.

Three hundred billion here and three hundred billion there . . . and pretty soon you have a robust, revitalized, 21st Century infrastructure.

It’s past time to get the country back into shape.



Here’s a novel approach to funding infrastructure, brainchild of Regeneron CEO Leonard Schleifer, that I’ve posted before.  If we find we need to go bigger than $2.25 trillion, we should add it to the mix.


A face-saving way to get Manchin and others on board might be to settle for 26.75% instead of 28% — but make up the difference by throwing the Tax Excessive CEO Pay Act into the mix.  It would send all the right Democratic signals.  The extra corporate tax would be VOLUNTARY.  To avoid it, a company would need only to pay its workers more and/or its CEO less.

Almost everyone agrees inequality in the U.S. has reached obscene, dangerous levels.  This would help to push things back toward sanity; and to the extent it didn’t, it would raise much needed additional revenue.  A win either way.



Speaking of inequality (and, yesterday, injustice), listen to Planet Money’s story of How Jacob Loud’s Land Was Lost.  Gripping, maddening — but ultimately hopeful, because years of hard work have righted this wrong in 17 states, including 8 in the South.

 

Post navigation

← Justice, Music — And Wow!
Lowering The Temperature On Tax Day →

Quote of the Day

"We've forgotten all the sacrifices that the people who've gone before us made to give us this wonderful life that we have. We accept it; we take it for granted; we think it's our birthright. The facts are, it's precious, it's fragile -- it can disappear."

Ross Perot, 1988

Subscribe

 Advice

The Only Investment Guide You'll Ever Need

"So full of tips and angles that only a booby or a billionaire could not benefit." -- The New York Times

Help

MYM Emergency?

Too Much Junk?

Tax Questions?

Ask Less

Recent Posts

  • Our Record-High Stock Market

    June 30, 2025
  • Stuffing The Goose

    June 30, 2025
  • Yes! (Plus A Bonus)

    June 29, 2025
  • How Does THAT Make You Feel . . .

    June 27, 2025
  • Randi, David, Ken, and HYMC

    June 26, 2025
  • Six Links For Your Consideration

    June 25, 2025
  • Weekend Reading

    June 20, 2025
  • Oh, My

    June 18, 2025
  • 3 Quick Clips

    June 17, 2025
  • A Quick Poem

    June 15, 2025
Andrew Tobias Books
  • Facebook
  • Twitter
©2025 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams