This peice from Cato is another look to Canada for leadership to show the US how to arrest their decline.
Note that Canadian corporate tax at the federal level is less than half that of the US.
LESS THAN HALF.
How? Read the whole piece.
“Today the CPP is solvent over the foreseeable future, which contrasts with Social Security’s huge unfunded obligations.
The Canadian unemployment rate plunged from more than 11 percent in the early 1990s to less than 7 percent by the end of that decade as the government shrank in size. After the 2009 recession, Canada has resumed solid growth and its unemployment rate today is about a percentage point lower than the U.S. rate.
Tax – Corporate Tax Canada – 15%, US – 35%
“Canada’s federal corporate tax rate has been cut from 38 percent in the early 1980s to just 15 percent today. Despite the much lower rate, tax revenues have not declined. Indeed, corporate tax revenues averaged 2.1 percent of GDP during the 1980s and a slightly higher 2.3 percent during the 2000s.
Now compare Canada with the United States. In 2012, Canada is expecting to collect 1.9 percent of GDP in federal corporate income taxes with a 15 percent corporate tax rate. The United States is expecting to collect 1.6 percent of GDP at a 35 percent corporate tax rate. Thus, the high U.S. rate is not only bad for the economy, but it also doesn’t help the government collect any added revenue.”