Amid newly released Labor Department figures showing unemployment increases for the third straight month and growing concerns that the economy is headed for a recession, government advocacy groups can be heard sounding the alarm. Almost on cue, doomsayers can already be heard calling for expanded government programs and initiatives as a means to create jobs.
But government’s role in the economy is not to create jobs; that’s a primary function of the private sector. If the federal government feels the overwhelming desire to tackle the unemployment issue, they can do so by reducing taxes on corporations – as they have now become the highest in the world.
A recent study conducted by the Tax Foundation reveals that the U.S. currently has the world’s highest federal corporate income tax rate. Not only is this tax forcing America’s corporations to cope with smaller profit margins and inhibiting their competitive edge, but the dubious nature of the tax means that employers are implementing hiring freezes and layoffs.
Rather than contriving a short-sighted tax rebate scheme to curry favor with voters, Congress should focus on restoring America’s long-term economic competitiveness through permanent tax cuts.
– James Quintero