Time to Act

In the current economic situation is important that America is able to attract investment. The extensive spending caused by our nation’s financial meltdown has put our nation into tremendous debt. Foreign investment would boost our economy helping to cope with our large deficit. Our rates are too high to attract foreign investment in global economy where businesses can shop around for the lowest rates easily moving capital from country to country. Economists tax experts are known to argue over just about anything, but the one area there is a general consensus is that America’s uncompetitive corporate tax rate puts the U.S at a disadvantage. Lowering the rate would bring more companies and jobs to America, attract more capital, and encourage more investment.
A great example of a country that lowered their corporate that translated into an economic prosperity is Ireland. At one point Ireland’s tax rate was up to 50%, and unemployment had reached 17% as a result. They were facing a stagnant economy and the people of Ireland were leaving to find better opportunities. A new political regime cut the rate drastically to 12.5%, since the tax cut unemployment has almost disappeared and Ireland has the fastest economic growth rate of any developed nation. Increased production in Ireland’s GDP ended up generating more tax revenue for the government than with higher rates. Politicians in Washington are hesitant to lower our corporate because they fear it will lower tax revenues. The World Bank issued reports stating as the global average corporate rates fell, tax revenues increased as result. America can afford to lower rates but we cannot afford to keep our companies at a disadvantage to the rest of world. The more time it takes for congress to lower the corporate tax rate, the more jobs and investment we lose to other nations.