A More Inconvenient Truth

Corporate tax competition to improve global competitiveness

with 2 comments

Informative video on tax competition from the Center for Freedom and Prosperity. The US is at the center of global markets–just look at the international reaction to the market’s current correction. But how can US leaders secure this position against long-term threats from China, India, and other developing (and developed) economies?

With the R-word being brandied everywhere you turn, the best that our government can come up with is a fairy tale fiscal stimulus. Instead of reiterating the thrashing this “feel good economics” has received, I’ll point you to Mankiw’s Coalition against Fiscal Stimulus.

Where is the corporate tax rate in this debate? Paulson called for this back in July 2007 but I haven’t recently heard anyone propose to slash corporate tax rates–a move which would do more than anything else to anchor the US at the center of the global economy. The “flight to quality” would surely be accelerated by this type of pro-growth tax reform. Once again, politicians push intentions over outcomes. I shouldn’t be surprised…


Written by WithConfidence

January 28, 2008 at 4:29 pm

2 Responses

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  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Mike Harmon

    Mike Harmon

    January 28, 2008 at 4:39 pm

  2. Thanks for the tip on the Center for Freedom and Prosperity. If there’s one thing I’ve learned from this whole stimulus debacle is that unfortunately most people WANT to be taken care of by others, as opposed to taking care of themselves and their self-induced mistakes. I wonder if it stems from being in the cradle in our formative years, lol. However, there is a serious disconnect between that @ss-backward desire as an adult and the education system in our country. There’s a lot to be said about the Board of Ed and the Teacher’s Union keeping personal finance and economics, not to mention business skills from becoming requirements in schools. I wish more people would talk about that.

    Ignacio Gutierrez

    January 29, 2008 at 1:16 am

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