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Wednesday, October 22, 2008

Cutting corporate taxes

When critics of the US (and Pennsylvania's) corporate tax structure - like the NCPA, Tax Foundation, and Commonwealth Foundation - point out that the US (and Pennsylvania) has one of the highest business tax rates in the world, defenders of the current system claim that businesses don't actually pay this rate, because of lots of "loopholes." (Of course, they never identify the loopholes, or explain why we shouldn't eliminate the loopholes - which tend to the benefit politically connected few - and reduce taxes for all businesses).

The Cato Institute has a new bulletin that shows that is not the case - the US has one of the highest effective corporate tax systems in the world.

As we have noted, this high tax rate is the cause of outsourcing - or as we call "out-forcing".

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