And creating jobs is what a federal stimulus is supposed to be all about.
A plan proposed by Sen. Jim DeMint, R-S.C, and The Heritage Foundation calls for slashing tax rates on individuals and corporations by 10 percent while repealing the alternative minimum tax and reducing the death tax. A Heritage study shows doing this would result in 493,000 more American jobs by the end of the year. By the end of 2010, employment would increase by 1.3 million jobs.
Imagine how many more jobs our economy could create if the government went further, completely repealing the corporate income tax. Multinational and international companies would be encouraged to operate in the United States. They would hire workers, bringing jobs and new technology to our shores.
Meanwhile, owners of corporations would have more money to reinvest in research and development and in buying new equipment. They would be more likely to hire and train Americans, since there’s less reason to even consider moving their business to another country. As these investments pay off, economic growth will occur.
Lawmakers should think carefully before they borrow hundreds of billions of dollars, digging a deeper debt hole and expanding the size and scope of government. Far better to eliminate corporate taxes -- and unleash the job-creation power of our nation’s entrepreneurs.