Clinton Administration's Proposal To Increase Taxes For Multinational Corporations

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people and with and increase in their cost (tax is a type of cost)
they would be forced to decrease the average amount of wages which the their
employees received. This may take the form of decreased raises, or the laying
off of some people. This would thus decrease aggregate demand for goods
Nationally (as Multinationals would employ people in the US). It would also
cause the companies to produce their goods in other countries and thus decrease
the amount of people employed in the US. It would help the economy of other
countries as those multinationals would move there. Thus the supply of goods
demanded in the US would decrease. This decrease in economic activity (due to
the reduction of the money supply and the wages of the people) would cause the
economy to slow down and may plunge the country further into recession. These
companies may also provide goods for the US and would thus decrement the supply
of goods in America.
The multinationals produce goods in the US to export ...

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