Proposals for tax reform are sweeping the US and Europe. In the US top down and bottom up, tax reform is one of the few issues that could win bipartisan support in the Congress. A growing list of nations and states are pursuing reform by cutting spending and trying to grow their way out of their deficit dilemmas — cut government spending to reduce the draw of resources out of the private sector and restructure the way you tax in order to "incentivize" the growth of existing business and attraction or creation of new businesses.
The US in particular is in this fix because of their deficits. Special-interest groups have captured both political parties; the system in Washington ( and in some cases Europe) rewards those who trade in “special interests.”
U.S. corporate income tax rates are highest in the world after decades of excess spending and raising taxes in attempts to reduce deficits by raising tax rates, especially on corporations. Germany (30 percent), Taiwan (17 percent) and South Korea (25 percent) have already led the way. When Japan cuts its rate this year, the U.S. moves to the number one spot (39.2 percent, combined state and federal.)
In the decade leading to 2007, the 10 states with the lowest corporate income tax rates (2.8 percent on average) saw state personal income grow by 82 percent. That’s against 58 percent for the 10 highest taxing states.
Voting with their feet, Americans looking for jobs and opportunity move to the low tax rate states.
Right now no one is watching out for the most special interest group of all — the taxpayer. In America politicians bring home the bacon while the deficit soars.
For more: No one watches out for taxpayers | ajc.com
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