A Mapping of the Full Potential of US Corporate Taxation to

At the same time and unlike in much of the rest of the world, US funding and provision of public benefits (including, health care, childcare, family leave, and retirement security programs) are largely channeled through private employers, which elevates the role of the private sector in people’s lives and has left deep and unequal gaps in service delivery and quality. [...] Most of the theoretical research finds the relationship between corporate taxes and aggregate demand is negative: As the corporate tax rate goes down, post-tax incomes of corporations increase; as the theory goes, those are then passed on to consumers in the form of price reductions and better products and to workers in the form of higher wages, which in turn boost aggregate demand, eventually lea. [...] Redistributive Role of Corporate Taxation and Well-Being The corporate tax code—through the costs it imposes and the benefits it provides—distributes resources between and within households, between communities, and between racial and ethnic groups (Darrick Hamilton and Linden 2018). [...] Corporations and their executives have become such a powerful force in US politics—thanks in part to the money they’ve been able to amass through low corporate and capital income taxation on the one hand, and the corporate tax subsidies and deductions provided for advertising and lobbying campaigns on the other—that individual voters have little opportunity to offset their political influence. [...] By assessing the impact of corporate taxation through a more holistic framework of the “4 Rs” of revenue, redistribution, restructuring, and representation, we see that strong corporate tax policy is, in fact, vital to all aspects of a thriving economy—and critical to the well- being of children and families.