As Obama and House and Senate liberals scream for higher taxes on US business, the MSM fails to mention that the US already has the second highest combined corporate tax rate in the world, close to 40%. Canada has just lowered theirs to 16.5%. Guess what will happen...
If our leaders in Washington really wanted to get the economy growing and trigger job creation to get unemployment back down to its lows under Bush, LOWERING CORPORATE TAX RATES AND MAKING THE US MORE COMPETITIVE FOR JOB CREATION WOULD BE A GOOD IDEA.
Don't hold your breath as long as anti-capitalist Barack Hussein Obama is President.
January 01, 2011
Canada slashes corporate tax rate to 16.5%
American lefties typically gaze northward with envy at Canada's high taxes, socialized medicine (never mind the waiting lists and Canadians fleeing southward for quick access to technology unavailable at home), and higher-density, mass transit-dependent cities. But The Canadians have figured out something that eludes American progressives: taxing corporations is a silly way to raise revenue for the state, as it hinders job creation, Phred Dvorak writes in the Wall Street Journal:
"Canada's government says the cuts and other business-attracting measures should bring more investment to the country. Economists say it's tough to figure out what the actual effects of such moves are, though some companies say Canada's relatively low taxes and stable financial and regulatory environment swayed their decisions to move operations and capital north."
It would be much better for America to cut its corporate tax rate to zero, which would spark an immediate wave of investment. Tax the resulting wealth when it is received by actual human beings, rather than at the level of job-creating legal entities. Better yet, tax the wealth when it is spent on consumption. The resulting boom will enrich everyone, though it will disappoint those who preach class envy as the basis for politics.
Taxing corporations is like taxing seed corn. It can only have the effect of hindering the creation of new wealth.
Back in 2008, the US was already becoming significantly less competitive because of its corporate tax rates. Today's news just makes the situation worse:
August 13, 2008
New Study: U.S. Corporate Tax Rate 50% Higher than Economic Competitors
by TF Staff
Tax Foundation President Scott Hodge this morning released the latest Tax Foundation Fiscal Fact in response to a new study from the Organisation for Economic Co-Operation and Development (OECD). The OECD study shows that for the 17th consecutive year, the average rate of corporate taxes in non-U.S. countries fell while the U.S. corporate tax rate stayed the same.
Click to view image: '1d71b6900de2-hansen200808131.jpg'
As a result of the U.S. failure to lower its corporate tax rate for more than two decades while other major trading nations lowered theirs, the U.S. corporate tax rate is now 50% higher than the OECD average. Nine key trading partners cut their rates during 2007.
"Continued failure by U.S. tax policymakers to keep up with our top global economic competitors means that we're solidifying a trend that will result in our children and grandchildren not seeing the economic growth we've seen in our lifetimes. There's a real-wallet impact for Americans as we continue to sit idly by while other countries improve the way they do business, and we should be very concerned about jobs, capital, and investments moving from high-tax countries to low-tax countries."
Tags: Canada, corporate tax rates, lower taxes, economic growth, Obamanomics, taxing the rich, US unemployment, economic growth
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