On Monday, Donald Trump stopped the wisecracks and laid out a serious plan to jumpstart the nation’s limping economy. He proposed tax cuts, regulatory relief, unfettered development of coal, oil and natural gas, and fairer trade pacts. One item in his plan will do more than all the others to get the nation working again–cutting corporate taxes. Trump pledges that “under my plan, no American company will pay more than 15% of their business income in taxes.”
Immediately, Hillary Clinton pounced on Trump’s “tax breaks for big corporations.” Her class warfare rhetoric reminds us that in this election voters have to decide between Hillary’s politics of envy or Trump’s agenda of economic growth for everyone.
First the facts: the U.S. corporate tax rate is 35% — highest in the developed world. Even with deductions, companies here pay on average 27%, which is more than in most other countries. Since 2000, nearly every industrialized country has cut corporate taxes to compete for business – except the U.S.
Consider Ireland. It’s not just shamrocks making that country green. Money’s been pouring in from around the globe, since Ireland slashed its corporate tax rate to 12.5%, one of the lowest in Europe. In 2015 the country’s economy grew three times as fast as the United States. Companies from the U.S. and across Europe hurried to set up operations there.
Closer to home, Canadians of all political stripes — Liberals, Conservatives, and Progressives — put their ideological differences aside and agreed to lower the country’s corporate tax rate from 42% to 26%. They decided that fighting over a bigger economic pie beat arguing over how to divvy up a smaller one.