Cutting the corporate tax rate in return for businesses promising to create more jobs is a continuation of trickle-down policies that have failed spectacularly in the past. Many companies will take the tax break and wiggle out of creating jobs. Instead we should offer a tax credit to companies after they add good-paying, full-time jobs on American soil.
Why is this important?
Ronald Reagan plugged many loopholes in the Personal Income Tax Code as part of a deal to reduce the tax rate. 30 years later the tax rate is still low but the loopholes have crept back in one at a time under the radar. Instead of giving a reward first and hoping some businesses will actually earn it we should give the reward after the jobs are actually created.
