Lagging Behind on Taxes and Competition Suffers

By September 22, 2007Taxation

From Deroy Murdock’s latest column:

“Sweden and Russia last year eliminated their estate taxes because they said the tax was economically counterproductive,” economist Stephen Moore wrote in the August 31 Wall Street Journal. “In Germany under Chancellor Angela Merkel, the corporate tax rate has been reduced to less than 30 percent from 39 percent.” Poland recently chopped its business tax from 27 percent to 19.

Even Hanoi gets it! Thanks to corporate-tax relief, “the business environment will become more and more attractive, resulting in increased investment,” Vietnamese tax chief Nguyen Van Ninh told Moore.

While America’s corporate tax levitates at 35 percent, seven European Union nations have lowered business levies this year. The EU-average corporate tax is 24.2 percent.

Larry Kudlow covered the same territory in a May blog post.

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