Employers disagree that cutting business tax rates would improve unemployment figures, according to a new study by the Institute for Corporate Productivity.
The study also reveals that only 3 percent of respondents believe high business tax rates would make hiring difficult for their organizations, and 9 percent of respondents say today’s unemployment rates are a because of the high U.S. labor costs. Twelve percent of respondents say their organizations’ decisions to increase their work forces outside of the United States are negatively affecting domestic hiring.
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According to the survey, most respondents say global issues and economic uncertainty are the main causes of unemployment, and 39 percent of respondents say high unemployment rates are a natural consequence of the global recession, and hiring will naturally improve as the economy recovers. Another 37 percent of respondents say unemployment rates are because of companies’ uncertainty when it comes to global social, political and economic conditions, ending in their reluctance to add more staff.
Although respondents feel cautious regarding hiring, 93 percent say they believe their organizations will either maintain or expand their global work forces over the next three years. All of the high-performing companies, which are defined as those that outperform competitors in revenue growth, market share, profitability and customer satisfaction, plan on doing the same.