tag:blogger.com,1999:blog-6436195628042715004.post2817529568737564537..comments2023-09-05T03:01:03.270-07:00Comments on Business Economist: The economic nonsense of corporate income taxUrsula Sprukhttp://www.blogger.com/profile/09989030899817531494noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6436195628042715004.post-20392271075728181752010-07-16T06:35:47.530-07:002010-07-16T06:35:47.530-07:00A very good post discussing a truly important issu...A very good post discussing a truly important issue. A brief overview of corporate tax rates around the world reveals that the U.S and Japanese corporate tax rates are the highest in the industrial world. While the lowering of corporate tax rates has captured the entire globe, it seems that the U.S is sadly quite exempt from international tax competition.<br /><br />It's welcome that policymakers realized the distortionary effects of corporate income taxation since the this form of taxation is the largest source of tax avoidance and capital flight. The recent data from Tax Policy Center suggest that corporate income tax represents cca. 12 percent of federal tax revenue (http://www.taxpolicycenter.org/briefing-book/background/numbers/revenue.cfm) and its share has decreased since 1950. In addition, it should be emphasized that corporate income taxation is a substantial source of displacement effect since, in the U.S, it diverts almost 40 percent of corporate income from business investment into the government sector.Rok Sprukhttps://www.blogger.com/profile/06002832007011239363noreply@blogger.com