Oh Canada! Neighbors to the North Slash Corporate Tax Rate to 16.5% – US is still 35%
Posted by iusbvision on December 31, 2010
Japan is in the process of lowering its corporate tax rate by 5% and just days ago they have proposed to lower it again to 25.5%.
This leaves the United States with the highest corporate tax rate in the world.
Of course the little truth about the corporate tax rate is this, corporations never pay this, you do in the form of higher prices. All expenses of goods and services are passed on to the consumer which is you. Corporate taxes are just a way for government to raise your taxes and hide it in the form of higher prices. Of course some companies cannot raise their prices and stay competitive so they leave the country and go to China, Canada, Ireland, Mexico or Brazil.
President Obama’s own deficit commission said that we need lower rates and a leaner tax code to bring business here and to help spur compliance. Indeed, they said that the tax rates should be made lower so the government could collect more revenue to lower the debt. John Kerry even advocated lowering the corporate tax rate when he ran for president. The high tax rate combined with a 16,000 page tax code allows for government to pick winners and losers which generates corruption and paybacks. This is a no brainer folks, it needs to get done.
Will the Democrats do the right thing and lower the rate to bring jobs here? Or will they insist that the best way to grow the middle class is by waging a war of taxes, regulation, and uncertainty on their employers? And by trashing the currency with policy and monetizing the debt (printing money out of thin air). [See Cloward-Piven Strategy LINK1 and LINK2 – Editor]
UPDATE – Steve Forbes on why business is not hiring: