Would Corporate Tax Cuts Stimulate Job Growth?
All three of the Iowa Republican gubernatorial candidates say yes, but a couple of economists say not so much. Donnelle Eller of The Des Moines Register asked two area economists what they thought about the impact of corporate income tax cuts in relation to job growth. Ernie Goss, economics professor at Creighton University and David Swenson, an economics professor at Iowa State University both questioned the impact that corporate tax cuts could make in regards to job creation citing: • Goss stated that numbers tend to be overblown by politicians, and former Governor Terry Branstad’s numbers are at the level outside the experience of Iowa’s job growth rate, but Swenson noted that Iowa came close to the 3% job growth rate needed in 1988 and 1993. • Swenson said it would negate the impact of incentives that businesses already receive, like tax credits for research and development. But I would argue that those tax credits wouldn’t be necessary if companies got to keep their money. • Goss
