Would cutting corporate tax rates boost American jobs?
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Levi Cannon
Jan 01, 2019 · Edited: Jan 01, 2019
It depends on the industry. In most of the service industry, companies would grow, advertise more, and hire new employees. However, in manufacturing it would likely result in a lots of lost jobs. The main reason that automation hasn't taken all manufacturing jobs is that investing in robots requires a expensive upfront investment. Smaller manufacturers cannot afford the upfront cost of automation, even though robots become profitable after a short amount of time. Cutting the corporate tax rates would make automation far more affordable for smaller manufacturers and lead to a loss of jobs.
It depends on the industry. In most of the service industry, companies would grow, advertise more, and hire new employees. However, in manufacturing it would likely result in a lots of lost jobs. The main reason that automation hasn't taken all manufacturing jobs is that investing in robots requires a expensive upfront investment. Smaller manufacturers cannot afford the upfront cost of automation, even though robots become profitable after a short amount of time. Cutting the corporate tax rates would make automation far more affordable for smaller manufacturers and lead to a loss of jobs.