Alaska’s tax system is in dire need of reform; the state’s efforts to adjust its corporate tax brackets acknowledge the fact that corporate income taxes can have a negative effect on Alaska’s economy (“Corporate tax bill passes state Senate” Mar 2). Corporate income taxes are considered by many economists to be the most destructive tax, stunting economic growth by taking dollars out of the hands of businesses and stifling production, innovation, and risk-taking, the main factors driving economic growth.
While improving the current corporate tax system is a positive development in the short run, the state should consider moving towards a tax system that eliminates the corporate income tax. States across the country have begun moving towards lowering or eliminating all or part of their income taxes in order to spur economic growth; since 2007 ten states have lowered their income tax rates, and several other states are considering similar changes this year. The states that have taken steps to lower their income tax burden have seen dramatic economic improvement, with population and job growth.
Matthew Glans
Senior Policy Analyst
The Heartland Institute
Chicago, Ill.
Comments (2)
Add commentanother conservative think tank
that wants to eliminate all taxes. Which on the surface sounds so good while in reality they expects someone else to pay the bills. Corporation in Alaska expect all the infrastructure to be here at no cost to them. Corporations do not build roads for the public, maintain airports, provide public safety or anything else they need to support their business.
It easy to claim lower taxes will increase jobs. But in reality that as bogus as it gets. Corporations pay taxes on profits. Profits are related to production or sales. Lowering taxes on profits does not magically create the need for any additional employees. I know of no business that simply hires more employees if the employee is not needed to increase operations and profits. Corporation are not altruistic they are not know for hiring additional employees because they have higher profits and just want to give someone a job for no business reason.
These are...
...the same clowns who have regularly posted global warming denialist screed. Pay them no mind. They're just shills. Funded by the Koch Brothers. Recently outed by an insider who shared their inside strategy for obfuscation.