Tax-Cut Planet

National Review Online ^ | November 17, 2004 | Bruce Bartlett

[nikos1121]

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November 17, 2004, 8:16 a.m. Tax-Cut Planet Even liberal Europe is doing it. What can we learn?

President Bush’s tax cuts over the last four years were strongly opposed by liberals, and even many moderates saw them as at least controversial. So it is interesting to discover, according to a new report from the Organization for Economic Cooperation and Development, that governments of the left in Europe have been doing pretty much the same thing as President Bush has done here.

First of all, there have been a number of major tax cuts in Europe that have lowered taxes as a share of the gross domestic product by 1 percent, from 39.9 percent in 2000 to 38.9 percent in 2002. Among the 15 members of the European Union, the reduction has been a little greater, from 41.8 percent in 2000 to 40.6 percent in 2002.

Such a tax cut may not seem terribly significant, but one must realize that taxes have been climbing very sharply in Europe for decades and this is the first sustained reduction since records started being kept in 1965. At that time, the 15 EU countries took only 27.9 percent of GDP. By 1975, that figure had risen to 33.2 percent and by 1985 it was up to 38.8 percent.

[nikos1121]

Before cutting their corporate tax rates, Ireland's economy ranked second to the last of all the Western European Nations. After cutting taxes to 18% they are now second only to Germany and expect to be THE NUMBER ONE Western European economy by the end of next year.

Funny too, how the violence in Ireland has tapered off, because everyone is working!!!!

The liberals in this country.... don't get it and never will.

The same is happening with regard to allowing their citizens to invest a small portion of their retirement in private funds.

nick

[WildTurkey]

Before cutting their corporate tax rates, Ireland's economy ranked second to the last of all the Western European Nations. After cutting taxes to 18% they are now second only to Germany and expect to be THE NUMBER ONE Western European economy by the end of next year.

I had no idea. I still have no idea what their economy produces?

[MadAnthony1776]

Imitation is the sincerest form of flattery.

[nikos1121]

They are very big into digital economy but that's a good question that might bring up some answers if you google it.

nick

[WildTurkey]

I did google it. Something like 1/3 of the PC's in Europe are made in Ireland. US investments are $3k per person in Ireland. Low wages help!

[nikos1121]

I'm telling you, the next four years are going to be great economically speaking. It started with REagan and it's on a steam roll. Lowering corporate taxes will fuel it.

DId you know that the GNP of China is like 1 1/2 trillion? Ours? 40 Trill. So what is the big deal about outsourcing. These countries re-invest with us.

nick