Fascinating. “Too little tax”??? No such thing!
The people at Oxfam are concerned because they think that additional taxes collected from corporations would be used for additional spending for “public services” with corresponding benefits for the poor.
Unfortunately, history shows almost without exception that when a government receives additional revenue, it doesn’t increase the budgets of “public services” or any existing service or program. It spends the money instead on new programs with limited benefits to the poor but tremendous benefits to the very corporations the government public denounces as “not paying their fair share.”
So in a recent 23-year period, large corporations increased their profits from $2T to $7.2T. Great. Let’s see if we can do better in the next 23 years.
What happens to all that money? Do corporations stuff it into a big corporate mattress lying down in the big corporate basement? No, they use it to expand their operations, which means more jobs to generate more (and usually cheaper) products; they pay some of it out as dividends, which are mostly reinvested also. This activity, this constant impulse to use money to make even more money, it many, many times more beneficial to the poor than the most generous of all government “public services” programs put together.
Additionally, who pays corporate taxes — from those corporations who, even in higher taxed countries, actually pay taxes? Consider this, where do corporations get the bulk of their receipts? From their customers.
This article suffers from the fatal flaw of thinking governments are perfectly honorable and single-minded in their pursuit of increasing the welfare of the poor and that corporations are perfectly dishonorable and single-minded in their pursuit in increasing their wealth by any means.
Ah, if only the truth were so simple.