Skip to comments.The White House's Global Tax Gaffe
Posted on 04/02/2012 10:24:29 AM PDT by 92nina
On Sunday, Japans corporate tax reform kicks in and the United States will have the highest corporate tax rate in the world. Including average state taxes the corporate tax rate in the United States reaches an astounding 39.2 percent, much higher than the OECD international average marginal tax rate of 25.5 percent.
Obamas own former Council of Economic Advisers chairman, Austan Goolsbee, documented firm sensitivity to taxation. Goolsbees paper, published at the University of Chicago, highlighted increased deadweight loss as a significant adverse consequence of corporate taxation. Simply put, taxes create inefficiencies while giving governments more money to spend.
Businesses, like individuals, change behavior relative to stifling tax policy. Grant Thorntons 2010 international business report cited a number of tax issues that drive businesses awaybusiness profit tax was considered the largest burden followed closely by payroll taxes. In the same report, respondents listed Hong Kong as the least burdensome country for business taxation. Hong Kong has a corporate tax rate of 16.5 percent; the United States has a corporate tax rate that is 24 percentage points higher. How long can America maintain a comparative advantage while having the highest corporate tax rate in the developed world?
With the highest rates in the world, businesses are given a perverse incentive to invest their money overseas rather than bring it home. Under current policy, businesses are double taxed if they bring their earnings home paying both foreign taxes and the difference between the U.S. rate and the foreign rate. The higher our corporate tax rate, the less likely businesses are to create new jobs here or bring investments back to the United States. Its a lose-lose for Americans.
The White House hasnt seriously addressed the problems if the United States has the highest corporate rate in the world, other than sending Joe Biden across the country to tout an untenable global minimum tax rate. Remember how well that turned out after Bidens summer recovery tour.
Read more: http://atr.org/white-houses-global-tax-gaffe-a6824#ixzz1qu8yvLKb
Finally! We’re #1... thus proving Obama’s affinity for American exceptualism.
Regardless to whether climate 'change' is occurring, and whether it goes up or down, the ability of the world ...leaders... to get together and actually STOP or REVERSE it is just ridiculous.
Our 'leaders' cannot stop WAR, but pretend that given enough money, they can somehow 'tie' the weather to the ground so it doesn't move somewhere else.
Yep, even though it’s backasswards, we’re #1! And the libs are totally proud of it no doubt.