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As Industrialized Countries Cut Corporate
Taxes, U.S. Rate Still Second-HighestCanada, the Czech Republic, Korea,
and Sweden all cut their corporate tax rates in 2009, distancing the United States even further from the pack with its combined
federal and state rate of 39.1 percent.America's high corporate tax
rate should be a red flag to U.S. lawmakers worried about the country's flagging economic growth, slow wage growth,
and our overall global competitiveness.http://www.taxfoundation.org/news/show/24980.html
New Zealand's Growth from tax cutsThe
record speaks for itself – the 1988 cut in the corporate tax rate is a good example. In the decade
before 1988, net revenue from company taxes averaged almost one billion dollars a year, while in the decade after, it was
three times as much - almost three billion dollars per year. This
is a remarkable result – a sustained revenue pattern three times higher than the previous decade, once
the corporate tax rate had been cut from 48% to 33%. To the non-business person, the result is counter-intuitive,
since the expectation would be that revenue would decline in proportion with the size of the tax cut. Reducing
the tax rate by nearly a third would surely result in about a third less revenue, wouldn’t it? But
this expectation overlooks both the incentive and stimulus effects that tax cuts give. Ask any business
owner what they would do if their tax bill was cut by a third and they will surely say they’d invest the balance back
in the business. This is the essence of why tax cuts work. They give businesses the
confidence, and the wherewithal, to invest.
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