So, do corporate tax rates affect economic growth? Consider the fastest growing economy (as of 2013): 1) it cut corporate taxes from 37% to 24% with the 5 year goal of 15%, 2) it cut personal income taxes by approximately the same percentages, 3) it’s reduced gov’t share of GDP from about a third to 22%, with the long run goal of a single-digit share...some say 5%. The country: Chile.
The last time we even attempted to reduce gov’t share of the economic pie was under Reagan, and those tax and program cuts fueled an economic boom not seen since post WWII. Alas, today’s politicians pass programs purely to get reelected...one is hard pressed to explain free cell phones otherwise. They don’t have the stones to cut spending. With over half the country on some form of gov’t subsidy, this Republic is doomed.
That boom was also fueled with debt. We dramatically increased the national debt under Pres. Reagan. It was not hard to grow a economy under a preglobalized standing. It is a different world to today.
Cutting taxes is one thing. We haven't cut debt and .Gov in decades.