How We Are Driving Businesses Away

Posted: October 7, 2008 in Economy

U.S. Tax on Business, 40% – In Europe, 23%
By Chris Edwards

Of late, U.S. economic policy has been dominated by responses to short-term crises — the Wall Street bailouts, the economic stimulus bill, and post-hurricane spending. Whether or not such interventions make sense, they divert attention from the urgent need to bolster America’s long-term competitiveness in the global marketplace.

While U.S. fiscal policy has been directionless, many of our international competitors have initiated dramatic tax reforms that put them at a distinct advantage for attracting outside investment and attendant job growth.

Consider that 12 of the 30 nations in the Organization for Economic Cooperation and Development have capital gains tax rates of zero. Meanwhile, Congress is dithering about extending our 15-percent capital-gains tax rate. And note that while numerous industrial countries — including Australia, New Zealand, and Sweden — have abolished their death taxes, the U.S. death-tax rate is set to jump to 55 percent in 2011. (more…)

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