Corporate Taxes, Disincentivizingly

By January 5, 2009Economy, Taxation

Mark Steyn notes the column by Steve Forbes urging President-elect Obama to stimulate economic growth by emulating Ireland’s corporate tax rates and adds:

To a certain type of simple-minded populist, the idea of soaking vast faceless corporations is appealing. But in the end a “corporation” cannot pay tax: The Globocorp corporate HQ looming in chrome and steel over the skyline does not have a pocket to dip into. Like all taxes, the actual cash has to be ponied up by flesh-and-blood human beings – the owners, workers and employees of the corporation. The growing gap between US corporate rates and other developed nations is a massive disincentivization for real human beings to start and grow a business here. And for those already here it encourages the kind of short-term thinking that leads to Bailoutistan and American sclerosis.

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