Entitlements and interest on the debt itself make up the majority of spending.
Most corporations don't make extraordinary profits. They make enough to stay in business, and if you tax them too heavily they will either raise prices or just close. So higher corporate taxes will ultimately depress business and be paid for by the consumer.
A few corporations certainly do make a lot of profit, and various "windfall profit" or "excess profit" taxes have been tried, but that's more about politicians trying to earn favor than anything that makes a practical difference.
Spending is the thing that's out of control, so that's where the problem must be attacked.
> Most corporations don't make extraordinary profits. They make enough to stay in business, and if you tax them too heavily they will either raise prices or just close.
Corporate taxes are levied on profit, not revenue. Raising corporate taxes would not cause any businesses to fail. And businesses can only raise prices if the market will bear those higher prices. Prices are set based on what customers will pay, not on what profit margin the company wants.
> Raising corporate taxes would not cause any businesses to fail.
It is a little more nuanced than that. Raising corporate taxes can make it harder for businesses to succeed if it sharply reduces after-tax profits or discourages investment. OTOH, if done well, the incremental tax revenue can create a healthier business environment overall.
Most corporations don't make extraordinary profits. They make enough to stay in business, and if you tax them too heavily they will either raise prices or just close. So higher corporate taxes will ultimately depress business and be paid for by the consumer.
A few corporations certainly do make a lot of profit, and various "windfall profit" or "excess profit" taxes have been tried, but that's more about politicians trying to earn favor than anything that makes a practical difference.
Spending is the thing that's out of control, so that's where the problem must be attacked.