South Korea President Says Corporate Tax Cut is Vital

From the Korea Times:

A key member of the President-elect Lee Myung-bak’s transition committee said Monday that the incoming administration will reduce corporate income taxes to help businesses expand investment and create jobs, strengthening the country’s growth potential.

Rep. Choi Kyung-hwan, a member of the Presidential Transition Committee, also said in a radio interview that the corporate tax cut is key to attracting foreign investors and companies.

“The corporate income tax reduction is not a matter of choice, but a matter of life and death for Korea in an increasingly globalized business environment,” Choi said.

During his presidential campaign, President-elect Lee pledged to cut maximum corporate taxes from 25 percent to 20 percent to help create a more business-friendly environment.

By contrast, the U.S. federal-state corporate income tax rate stands at 39.3 percent, the second highest in the industrialized world.