FreedomTalks

British Conservatives are considering reducing corporate tax rates. No doubt this would be a good thing for the Brits, but I suspect it would also be a good thing here in the U.S., if only because it would increase the pressure from international competition to lower corporate tax rates.

Here’s what FW Chaiman Dick Armey wrote about corporate tax rates in USA Today earlier this year:

If the country’s high corporate tax rates persist, however, America might risk losing its global competitive edge. Globalization has made tax rates competitive, with each nation vying for businesses. But the United States is falling behind and risks losing out as a result. Corporate tax rates in the United Kingdom, Germany, New Zealand and even Sweden have all been slashed to 30% or less. The average corporate tax rate in the European Union is 26%. Compare this with that of the United States, where, if state-level taxes are included, the average corporate tax rate stands at an unfriendly 40% — hardly an encouraging number for businesses or investors.

This entry was posted on Monday, April 28th, 2008 at 9:15 am and is filed under Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.