Buried in the piece: “…overall taxes paid by individuals under the new tax law are up so far this year by 3%, thanks to higher wages and salaries, according to the CBO. Last year tax payments by individuals went up 4%…”
So companies boosted wages, hired people who paid taxes.
2. Corporate income taxes make up just 9% of federal tax revenue - individual income tax and payroll tax (also paid by employers and funds Social Security, Medicare, hospital insurance and unemployment insurance) make up the bulk (83%) of federal tax revenue.
3. Best way to increase federal tax revenues is to increase pace of job creation, incentivize investments (especially foreign) in US economy, while also eliminating wasteful spending. Boosting travel to US could net billions annually (while creating lots of US jobs).
4. It is trendy for some politicians to smear tech companies but such companies are creating jobs with the biggest wage gains (= more tax revenue for governments), so politicians should be encouraging more people to embrace knowledge work instead of demonizing such companies…
5. But just like manufacturing jobs left the US, knowledge work too can be offshored- in fact already is being offshored - lack of available talent will force companies to staff up overseas (India in particular). We need to make sure that we are offering more technical training.
6. Teachers are key to developing more knowledge workers. As I have proposed before, we should eliminate taxes on teachers (no 2020 candidate has proposed this BTW) and encourage more to enter the education field, otherwise we’ll be relying on foreign tech workers to bail us out.
7. Most large US companies have massive technical operations set up in India and elsewhere in Asia because they can’t get enough engineers here in US - and with politicians demonizing tech companies fewer Americans will want to go work for such companies…Bad for the future!!
8. Now imagine where US wage growth would’ve been had politicians and lawmakers encouraged and incentivized more Americans to embrace knowledge work and aided developement of technical and analytical skills between 2000-2015 (when many US knowledge jobs got offshored).
9. More jobs are becoming more complex; with boomers retiring, fewer jobs will be filled quickly if employers can’t find people here, meaning any wage growth will occur for workers that companies hire overseas, not for US workers. Not one 2020 candidate has a plan to tackle this.
10. A bigger question/dilemma is whether younger Americans would even want to take on these knowledge jobs boomers will exit; the lack of workers suggests younger workers aren’t interested in such tech work (and politicians demonizing tech isn’t helping).
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