This is an excellent article that explains why food stamps and unemployment insurance are a better stimulus than tax cuts.
It also explains why corporations aren't hiring workers. Instead, they are buying their public stock back to bump up stock prices. This will positively effect the stock options of the owners and executives because buybacks artificially raises the price of the stock. Only 7/10 ths per cent of corporate CFOs plan to hire workers.
This is also why cutting corporate income tax will not be beneficial. Corporations can pass their profits and taxes to share holders. Because of numerous corporate exemptions, few US corporations actually pay US corporate income tax.
In Florida if you do not pay federal corporate tax, you are exempt from Florida corporate tax.
Carnival Corp., Florida's 10th-largest public company with 4,220 South Florida employees, has a $136-million state payroll, posted more than $1-billion in profits last year. It paid $ 0 in Florida corporate income tax.
Verizon Communications Inc., the phone giant that employs 12,500 people in Florida, and Saddlebrook Resorts Inc., the elite retreat in Wesley Chapel that is home to a famous tennis training center, didn't pay any corporate taxes either.
In fact, 98 percent of the estimated 1.5-million businesses in Florida paid nothing. And many of those that did pay found ways to reduce their tax bills.Only 5,000 business in Florida pay state corporate income tax
source: http://www.sptimes.com/2003/10/26/State/Loophole_Inc__A_speci.shtml
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