July 26, 2008
"US ought to lower corporate tax rates"
Presidential candidates should look at what some European nations have done to spark their economies.
Some economists will argue otherwise, but Americans know that lightness in their pocketbooks and wallets means the national economy isn't doing well right now.
Barring a speedy and unexpected turnaround this year, fixing the economy will likely be one of the biggest and most important jobs facing the new president who will take office in January.
As Democrat Barack Obama and Republican John McCain ponder the daunting task of fixing the economy, they should look at other developed nations that have broken out of economic doldrums in recent years by making it easier and less costly for companies to do business.
Ireland is perhaps the foremost example. Ireland had been one of Western Europe's poorer countries for decades. But its economy began turning around during the 1990s and boomed beginning in 2003 when the country lowered its corporate tax rate to 12.5 percent, one of the lowest corporate tax rates in the industrialized world. Low corporate taxes have led to companies and jobs rushing into Ireland. Apple's European headquarters is in Ireland. Pharmaceutical giant Pfizer produces Viagra in Ireland. Dell, Microsoft and Intel all now have large operations in Ireland.
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Among 30 industrialized nations, the United States had the second highest corporate tax rate in the world in 2006, according to the nonprofit Tax Foundation. The 39.3 percent corporate tax rate in this country was just behind Japan's 39.5 percent tax on corporations.