VACostCutting

Friday, September 19, 2008

Patriotic? Here's an idea for you...

So by now we've all heard Joe Biden's comments from ABC's "Good Morning America" where he tells folks that paying higher taxes (and redistribution of wealth) are patriotic.

Really, Joe? Things must be different up there in Delaware (or maybe in Washington, DC).

Last I checked though, turning over more money to the government for them to waste on bridges to nowhere and monuments to sitting Congressmen (thanks, Charlie Rangel!).

But the good folks over at the Heritage Foundation have a better idea. They write that "Real Patriots Cut Taxes," which sounds like a much better plan to help build our economy.

Over the last decade almost every member of the European Union has cut its corporate tax rate. Germany cut its rate from almost 40% to nearly 30%. The United Kingdom reduced its rate to 28% from 30%. Even the famous Scandinavian welfare states have gotten in on the corporate tax cutting game. Sweden and Norway both dropped their corporate tax rate to 28%, down from 60% and 50%, respectively. Meanwhile, the U.S. corporate tax rate, after averaging in state corporate tax rates, is stuck at 39%. This is higher than all 27 members of the EU.

High corporate tax rates are undermining U.S. international competitiveness. In today’s global economy, high rates deter companies from taking advantage of new market opportunities in countries they otherwise would be eager to compete in. According to the
2008 Index of Economic Freedom, the U.S. has the fifth-freest economy in the world (behind Hong Kong, Singapore, Ireland and Australia). Of the top 10 freest economies in the world, the U.S. has the highest corporate tax
rate
. Even seventh-ranked Canada has joined the tax cutting crowd. Canadians recently cut their corporate tax rate to 19.5% and they have already scheduled another cut in their corporate tax rate to 15% by 2012.

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