Friday, October 19, 2007

Corporate Tax Cut Ahead?

“The reality is the federal government would not lose any money if it cut the corporate tax rate by 5 or 10 percent. We’ve seen over the last decade these dramatic [corporate] tax rate cuts in Europe. The average rate there now is at 24 percent. Corporate tax revenues as a share of GDP in Europe have soared since the 1980s. We’re on the far side of the Laffer Curve.” –Cato tax expert Chris Edwards on last night's Kudlow & Company discussing Rep. Charlie Rangel’s "mother of all tax reforms" and reports that Rangel might be considering cutting the corporate tax rate from a sky high 35 percent down to 25 percent.