03 October 2011
U.S. Tax Rates Still Low By Global Standards
Economics is all relative. Incentives depend upon who is better relative to someone else, not absolute rates. Clearly, when it comes to taxes, the United States compares favorably to its international competitors with low income tax rates by global standards. Simply put, the case that U.S. tax rates are too high is not supported by any objective measure. And, since U.S. tax rates are already lower than its competitors, it is unlikely that reducing U.S. tax rates will improve its economy relative to them.