BTC Brief: Cutting Corporate Tax Rate Unlikely to Boost Economy, Create Jobs
By Alexandra Forter Sirota
- In her State of the State address, Governor Perdue proposed cutting the corporate tax rate by 2 percentage points from 6.9 to 4.9 percent.
- A 29 percent cut in the corporate income tax (from 6.9 to 4.9 percent) would result in just a 2.2 percent cut in overall business taxation and only a 0.04 percent reduction in total business costs.
- Cuts in the corporate tax rate are not targeted to businesses undertaking new investments, job creation or research and development. Thus, they do not generate the kind of new economic activity that is needed to create more jobs.