A WSJ editorial today is a perfect follow up to my post yesterday, It’s the Spending. The Journal piece is about how Sweden, the sweetheart of socialist utopians, is cutting taxes to help it’s economy.
The editorial quotes a headline from Agence France-Presse as follows:
“Sweden Announces Income Tax Cuts to Boost Jobs.” They are cutting business taxes, personal income and payroll taxes.
Jan Bjorklund, leader of the Liberal Party said, “The corporate tax is one of the taxes which large companies really study when they plan to set up business somewhere.” Really? The Swedish corporate tax rate will come down to 26.3%, 1/3 lower than the US when combining both state and federal. As stated here before, the US has the second highest corporate income tax in the industrialized world.
Why are they doing this? To compete with Eastern Europe, Asia and Ireland,
which, since lowering its corporate tax rate, currently 12.5%, has seen its economy explode. And to spur entrepreneurialism: only two of Sweden’s 50 largest companies was founded after 1970, while more than half were started
before WW1.
And three years ago, Sweden abolished its inheritance tax.
Could it be that we are about to head down the road that Sweden has already discovered is a dead end?
3 comments:
This is flawed logic. You want the economy of Ireland?!?!
Our tax rate is near the lowest in the free world because of all the loop holes and Corporate Welfare.
Stop Corporate Welfare! Stop Spending!
Hey Eric, nice leap - "the economy of Ireland"?!?!
Riddle us this, what is the actual tax rate here due to the corporate welfare and loopholes?. What would it be under the regime you want?
A lot of emotion, but lacking the facts to back things up. I especially like the capitalization on your part of Key Words, and Talking Points. The exclamations are a nice touch too.
I guess the reason I like the blog is because Lou is thoughtful and researched in his concise points.
You have a gift Lou, and I look forward to your every post (no pressure). I decided after seeing all these rants by eric I would start commenting more often.
Keep up the good work.
Hey Island Dweller,
You can compile facts and figures to support any argument.
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