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View Diary: Krugman: "The Competition Myth" (292 comments)

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  •  No, he's correct. (0+ / 0-)

    Corporate taxes have corrosive and undesirable effects even when not paid, because of the forced resource allocation they cause.  The main problem with American taxes isn't the rate, per se, but the fact you have to pay them on overseas income, which no other country requires.

    It makes American companies far less profitable than the equivalent foreign company, and offers a very strong incentive for foreign takeover.

    The fact that 2/3rds of the companies don't pay income tax hints very strongly that the tax rate is over the Laffer curve and is actually returning less revenue than it could at a lower rate.

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