A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high “drive investment elsewhere, leading to slower economic growth,” as the Tax Foundation puts it. Full Story….
This is a great article which really paints an accurate picture about how high corporate tax rates have caused an exodus among all sizes of corporations in the US today. When you can put the socialistic French and the supposed capitalistic Americans in the same tax bracket you know you have a problem. Despite the obvious failure of Keynesian economic theory, progressives are continuing to push for higher tax’s on corporations. They do this knowing full well that raising tax rates actually decreases treasury revenues.
If the United States continues to increase tax’s on corporations, they will simply leave the country as many others have over the last 20 years. Fewer corporations means poorer labor markets, which leads to less consumer spending. This leads to lower profits thereby reducing tax receipts and so on. It is not rocket science to see that this trend will continue to erode the US economy until one day it will collapse.
-Trevor
@kfir720am