A glance into US Government Revenue
The source of the figure shown is based on the US Bureau of Economic Analysis Data.
It can be clearly seen that globalization tends to move taxation away from corporations, and onto individual citizens. When to we analyze the plots on the chart we can see the red which indicates the corporate tax is contributes minimum to the total US government revenue and has decreased over the years. This is because the companies have the ability to move its locations to places where tax is the lowest. With the help of technology, communication and control of these headquarters are easy from tax haven locations. Thus, it can be seen that over the years the corporate income tax has been decreasing. Also, when thinking about the huge multinationals which are based in the US and the revenue in brings in as of 2012 is 5% only.
Individual citizens on the other hand have less ability to move as corporations can. Also, in today’s world of increased competition and the lack of jobs, each industry competes with other industry with respect to how any tax breaks it can give to prospective employers. It is clear from the image that the proportion of revenue coming from personnel income taxes and social security and Medicare funding has been rising
Raunaq Kuruvilla Mathew (Dubai Campus)