Has Fred Thompson Read the NAM’s Cost Study?

By June 7, 2007Economy

Sure looks like it. Here he is on CNBC’s Kudlow & Company yesterday:

Mr. THOMPSON: We have, you know—if you include state taxes—the highest corporate tax rate in the world. That makes us less competitive. All those things have to be looked at. And all those—especially as far as the corporate tax rate is concerned, need to be clearly reduced, I think.

KUDLOW: Yeah, it’s an interesting point. There’s been a bunch of news articles. Europe, believe it or not–I mean, old Europe, believe it or not is engaging in low tax-cutting competition. And…

Mr. THOMPSON: It’s ironic that when western Europe starts going lower than you, you need to be concerned about it.

Well, if the Senator hasn’t read the NAM’s 2006 cost study* — “The Escalating Cost Crisis” — he must be channeling it. The study (.pdf file here) showed that manufacturers in the United States suffer a 31.7 percent structural cost disadvantage compared to our major global competitors, and a big reason is high corporate taxes.

The corporate tax burden was both the heaviest burden in absolute terms and the largest contributor to the deterioration in the U.S. structural manufacturing cost gap, adding 2.0 percentage points to the U.S. cost disadvantage. This is largely due to the fact that U.S. statutory rates were unchanged, even as several other trading partners continued to lower their rates, but also is due to other aspects of tax policy (such as failure to renew the Research and Experimentation tax credit).

If we’re not going to get presidential debates devoted solely to manufacturing and the economy, guess the best alternative is one-on-one candidate interviews on Kudlow’s show. (He had Romney on in February.) Kudlow sure hits the right topics.

*Full attribution: Deloitte & Touche LLP cosponsored the report by the NAM, Manufacturing Institute and the Manufacturers Alliance/MAPI.

UPDATE (4:40 p.m.): Thompson talked about tort reform, too. Video here.

Join the discussion 3 Comments

  • jeffreydj says:

    Then I would gather that the NAM would staunchly support the proposal to write major tax relief to manufacturers who keep their domestic workforce, and tax the pants off of the corporations that offshore their plants and personnel.

    But I would gather wrong, wouldn’t I? There isn’t a member of the NAM that isn’t eager to get cheap Chinese to do their manufacture.

  • Lawrence Fisher says:

    Well, I see how “fair and balanced” this site and its comment section are.

    I posted a comment last night critical of Fred Thompson, and of NAM’s so-far support of his potential candidacy. I wasn’t nasty or profane, but I was clear – I think his candidacy is a bad idea, and so is NAM’s support of him.

    Do you see that comment anywhere?

    But then, will anyone see THIS comment either?

    If you always read what you’ve always read, then you’ll only know what you already know, and will never learn anything new.

    Please tell me that NAM members don’t consider the above a GOOD thing?

  • Don Jones says:

    It is a large poker table. Over there is Hillary. I say there is McCain and who is that? Oh yes, the other Thompson. . .Tommy. Yup they are all here. Oh look who’s at the bar. A couple of Terrorists. Then there is Putin drinking with George. They would be at the table but Bush will buy all the pots and let our childrens childrens children pay for them.

    Just when it is not expected there is the thump of some mighty big boots. Hell, the man fills the door way. A booming deep voice and a stern face say, “Mind if I take a hand folks.” Good God! Palms and mouths go dry, folks start fingering their chips and a weak voice say’s, “Sorry Sir, this is a closed game” You must register first.

    All faces looked at each other, even the Terrorists looked up. The big man smiled a closed mouth crooked knowing all smile and said, “Oh, that’s all right. I’m not spending my money yet anyway. I see you folks are running through your chips however and your horses look mighty weary out there.

    My horse is rested. Makes sense to have a fit horse in a good race.Well see ya all down the road.” Then he turned to the Terrorists and said, “Git”

    Was that MyManFred.com ?

Leave a Reply