When considering a lower tax rate we can make one of two assumptions. We can assume that changes to taxes rate will not change behavior, or we can assume that changes to tax rates do change behavior.
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Why does business seem to thrive more in some countries than in others? A recent Washington Times article by Richard W. Rahn compares the business climates of 52 countries. Using the recently released Forbes magazine list of the "2000 biggest, most powerful public companies on the globe," the author ranks the countries according to the number of large public companies per million residents. He then looks for patterns among the countries where business flourishes.
Switzerland tops the list with 5 large public companies per million residents, followed by Sweden (3.1), Singapore (3.0), Finland (2.9) and Japan (2.6). The U.S. ranks sixth with 2.4. Rounding out the list are the UK (2.3), Canada (2.0), the Netherlands (2.0) and Ireland (2.0).
All or most of the top ten countries:
For more on how business climates affect where companies locate within the U.S., take a look at our State Business Tax Climate Index.
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29 Democratic members of Congress from California today urged California to make its film tax credit more generous. A bill to do so, AB 1839, has passed the state Assembly and is pending in the Senate.