A More Inconvenient Truth

Archive for the ‘Taxes’ Category

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