ON CORPORATE TAXES

“Currently, the United States has the second-highest corporate tax rate of all industrial societies, after economically anemic Japan. The U.S. federal rate of taxation is 35 percent, and when the average state and local corporate tax rates are added, American corporations pay, on average, a 39.27 percent tax on their incomes. China is at 25 percent; Mexico is at 28 percent; socialist Sweden is at 28 percent; and prosperous Ireland is at a mere 12.5 percent. If these comparative rates continue for much longer, the United States economy will mortally bleed jobs and prosperity to a world—both nominally socialist and free market—that has learned the low corporate tax lesson from Reagan’s America that current Washington has forgotten. Obama’s solution to the problem of jobs and industry going offshore is to lean toward protectionist policies (renegotiate NAFTA, oppose new free trade treaties, etc.). When one combines Obama’s plans to tighten international trade, create carbon trading regulations that will be the equivalent of a further $100 billion corporate tax, raise taxes generally on business, as well as his mind-numbingly counterproductive ‘windfall’ profit taxes on petroleum product companies (full disclosure: as a rational person, I support and provide professional advice to the petroleum industry), one has a formula for economic catastrophe not seen since Herbert Hoover’s similar Depression-inducing policy in 1929.” —Tony Blankley