Outdone by Bulgaria!

By January 7, 2008Taxation

From today’s Wall Street Journal editorial page [subscription required], it appears that the United States is falling further behind on the tax front as more countries cut tax rates. The latest? On January 1, Bulgaria instituted a new flat tax rate of 10 percent. They join Spain, Kuwait, Estonia and Ireland as tax-cutting nations within the last year. The Socialist – that’s right, Socialist – Prime Minister of Spain has pledged to eliminate the nation’s wealth tax – saying it “punishes savings.” Kuwait has slashed their corporate income tax on foreign companies from 55 percent to 15 percent to “encourage foreign investors to enter Kuwait.”

As the Journal says, “It’s getting lonelier all the time at at the top for America, which with a corporate rate of 35 percent is one of the few developed nations left with a rate of more than 30%.”

With worrying economic numbers and talk of a recession, the administration is proposing a stimulus plan that could involve tax cuts. Let’s hope the President and Congress take a cue from Bulgaria.

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