Friday, March 21, 2008

Cut Corporate Taxes and Help our Economy

We are strangling out own economy. Would you believe that even in US states with low-level state taxes, the corporate tax rate is higher than FRANCE and 25 other major countries? Have a look, courtesy of Nealz Nuze:

The Tax Foundation has released a new study. A study that will, no doubt, get little media attention. And why not? Well, because it may be a bit boring .. and because many on the left (and that would be the media) don't particularly want you to understand these things. After all .. the study flies directly in the face of the liberal agenda. This new study shows that most American states tax job providers at higher rates than any other developed country in the world. If you were not educated in government schools you will immediately see that this could be a problem.

If you click on the link, it will show a state-by-state break down that adds each state's corporate taxes on top of the federal corporate tax rate. When you do this, it shows that half of the states in this country have a higher rate than any other nation. Even in states with fairly low state-level corporate taxes – states like Nevada, South Dakota, and Wyoming – the corporate tax rate is still higher than France and 25 other major countries. Take a gander:

  • 25 states have a combined corporate tax rate higher than top-ranked Japan.
  • 35 states have a combined corporate tax rate higher than third-ranked Germany.
  • 46 states have a combined corporate tax rate higher than fourth-ranked Canada.
  • All 50 states have a combined corporate tax rate higher than fifth-ranked France.
The study comes to a not-so-shocking conclusion, if you listen to the Neal Boortz Show or read Nealz Nuze .. "If federal lawmakers are serious about making the U.S. corporate tax system more competitive globally, they will have to partner with state officials to lower the nation's overall corporate tax burden." Or -- here's a wild concept – enact the FairTax.

In a related study by three prominent economists at the Tax Foundation, employees suffer most when their corporate employers are forced to pay high corporate taxes. This basically runs counter to the theories that have prevailed in American politics for decades ... that corporate taxes hurt investors. But this study found that workers bear 70% of the burden of corporate income taxes.

(bold emphasis mine) Europe, even with all it's socialism, has lower corporate taxes than many of our states. And the countries in Europe that are doing best economically, like Denmark, have cut their corporate taxes the lowest. It obviously works, so why aren't we doing the same?

Related Link:

There's no such thing as corporate tax

No comments: