Every election, I hear someone say: "We need to lower taxes for business to create jobs, stimulate the economy, etc..."
On the surface, this seems like a really good idea. Businesses employ people and we could use more jobs. But would this really do any good? I don't think so. Businesses only pay taxes when they generate a profit (or in the case of some large corporations, work the system to avoid taxes even when they make a profit) Most of the businesses I've worked with focus on EBIT (earnings before interest and taxes) as a key metric. No EBIT? No taxes. I've never heard someone say: "Wow, the corporate tax rate just went down. Let's get serious about making money now -- we were just playing before." Have you?