Filed under: Capitalism, Democrat Corruption, Domestic Policy, Economy, Energy, Progressivism, Regulation, Taxes | Tags: Obama's "Economic Patriotism", Slashing Corporate Taxes, The Booming Canadian Economy
We previously nattered on about President Obama’s idea of “Economic Patriotism,” which only shows that the president has little understanding of business and how it operates. The Left is deeply suspicious of business, at least Big business, and often labors under the delusion that it would be far better without business, or with business more completely controlled by government, so they didn’t cause so much trouble and especially pay their executives so much.
All this came about through what has come to be called “inversions” or businesses’ choosing to locate their executive offices in other countries to lessen the corporate tax hit. The latest case is Burger King’s purchase of Canada’s Tim Horton’s chain of coffee and donut shops and plan to move their headquarters to Canada. How unpatriotic to attempt to evade America’s corporate taxes, the highest in the world. Um, Canada’s total tax costs are 46.4 percent lower than in the U.S. Why would Burger King want to move there? Canada has the most business-friendly tax policy in the world!
The one solution that would quickly solve the problem is quite simple. Cut or eliminate the corporate taxes, especially the tax on income earned abroad. Inconceivable! Lower taxes, and give up all that revenue when our economy is so slow? When we so desperately need more jobs? Canada lowered their taxes to help business out during a recession. But, but tax receipts! We must have more money!
How much tax revenue did Canada lose by the dramatic reduction in their corporate tax rate, from 43 percent in 2000 to 26 percent today?
We have tried to tell you. Canada’s lower corporate tax rate raises more tax revenue.
According to OECD data, corporate tax revenue increased after Canada cut corporate tax rates beginning in 2000. Relieved of a crushing tax burden, corporations grow organically through lower start-up costs and reinvestment of after-tax earnings. They make more money, and the government gets more revenue. Works every time. It shouldn’t remain a mystery, and it certainly is not “Economic Patriotism,” which is just another of their clever talking points.
Democrats will attempt to use Economic Patriotism as an issue in the election this fall. Don’t be fooled. They just have no understanding of business. That’s why our economy drags along sluggishly while across the northern border Canada’s is booming.