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