The less taxes corporations pay the more money they can reinvest (hire/buy equipment) and pay out in dividends to their stockholders. The reason lobbyists are in such demand is the tax code and general regulations are way too complicated and everyone is looking for an edge. Plus it's the American way to get laws passed that benifit your buisness.
That is true if it only worked that way. History shows it does not.
The United States hit the 1st trillion dollar deficit during the Reagan era and has continued to skyrocket with the exception of a few years during the Clinton years, due to the internet boom.
President Ronald Reagan's 1981 cut in the top regular tax rate on unearned income reduced the maximum capital gains rate to only 20%--its lowest level since the Hoover administration. This tax benefits the wealthy, however, in 1986 President Reagan set tax rates on capital gains at the same level as the rates on ordinary income like salaries and wages, with both topping out at 28 percent.
Reagan significantly reduced the maximum tax rate, which affected the highest income earners, and lowered the top marginal tax rate from 70% to 50%; in 1986 he further reduced the rate to 28%
The U.S. borrowed both domestically and abroad to cover the Federal budget deficits, raising the national debt from $997 billion to $2.85 trillion. This led to the U.S. moving from the world's largest international creditor to the world's largest debtor nation. Reagan described the new debt as the "greatest disappointment" of his presidency.
During this time both parties were spending like drunk sailors. I see no way out of the situation the US is in without serious cuts in spending along with some revenue increases.
There needs to be a complete restructure of the tax system. Make it simple with something on the lines of a 18-20% tax rate on ALL income, no deductions, with everyone paying with income over $25-30,000.
Investors will invest if they are paying a 15 or 20 % tax rate, to say otherwise is , well not too smart. Something needs to be settled so the investors know what they are going to be paying. The uncertainity is what is scaring investors.
just my 2 cents.