DOES LOWERING THE FEDERAL CORPORATE INCOME TAX RATE CREATE JOBS?

The creation of the federal corporate income tax
occurred in 1909, when the uniform rate was 1% for all
business income above $5,000. Since then the rate has
increased to as high as 52.8% in 1969, and the single
rate has become eight different rates for different
income levels. Today's rate for companies with over
$18.3 million in income (the top category) is 35%.
Throughout US corporate tax history, Americans have
debated whether or not lowering the rate results in job
creation.
Proponents of lowering the corporate tax rate to create
jobs argue that it incentivizes job creation in the United
States instead of overseas, encourages increased
investment in research and infrastructure, and passes
savings on to consumers through lower prices. They say
that the United States already has the highest corporate
income tax rates in the world, which creates a
competitive disadvantage for US businesses.
Opponents of lowering the corporate tax rate to create
jobs argue that it results in more profits for corporations
without affecting job creation, and that unemployment
rates were the lowest in recorded US history during the
time when corporate income tax rates were highest.
They say that lowering the rate would increase the US
deficit, and that companies hire employees based on
need, not because of corporate tax rates.