With regard to growing the economy by lowering the corporate tax rate, as Larry Mayes predicts in his Nov. 19 letter to the editor:
This really doesn’t happen. Corporations don’t create demand all by themselves: Putting money in the hands of the middle class and the poor will create more demand and grow the economy.
A decrease in the corporate tax rate will increase after-tax income, which doesn’t directly translate into an increase in demand.
In 2004, the last time we repatriated corporate cash from overseas by the use of a tax holiday, a Senate report found that most of the additional cash wasn’t used to increase corporate investment in property, plant and equipment, but to increase dividends and purchase treasury stock, which increases the earnings per share of common stock. This does virtually nothing to create demand and grow an economy.
Kim McLachlan
Portland
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.