Heritage Analysis: Lower Corporate Tax Rate Would Spur Growth

By December 3, 2010General, Taxation

From the Heritage Foundation, “The Economic Impact of a 25 Percent Corporate Income Tax Rate,” a WebMemo on taxes:

One way to spur private sector investment in the U.S. and get it into the hands of entrepreneurs would be to reduce the federal statutory corporate income tax rate, which is currently 35 percent.

The Heritage Foundation’s Center for Data Analysis (CDA) conducted a dynamic simulation of a reduction of the corporate income tax rate to 25 percent, comparing it to a baseline forecast of the economy with the current policy of a 35 percent corporate rate.[1] The results of this simulation show the U.S. economy growing faster than the baseline in the 2011–2020 forecast horizon.

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