Daniel J. Mitchell

I wrote a post several years ago contrasting a good initiative by Senator Rand Paul of Kentucky and a statist proposal by Senator Chuck Schumer of New York.

There was no connection between the two ideas, but I thought the comparison helped show the difference between someone who instinctively wants more freedom and someone who reflexively thinks there should be more government control.

Let’s do the same thing, but this time highlight a difference between Rand Paul and Hillary Clinton, particularly since the two of them may be rivals in 2016.

First, let’s look at what Rand Paul recently said about corporate inversions, which is what happenswhen an American company decides to re-domicile in another jurisdiction (generally through a cross-border merger).

Senator Rand Paul told Futures magazine that the rush of American companies moving operations outside of the nation is due to failed authors of the U.S. tax code. …“I blame the tax code and those who wrote the tax code,” said Senator Paul regarding the record number of inversions by U.S. companies. …Senator Paul said that antiquated tax laws have made the U.S. uncompetitive against countries in North America and Europe and called for Members of Congress to take a moment to recognize their faults. “…we should’ve brought a big mirror, so [Congress] could look in the mirror and see where the problem is. The problem arose from legislators who wrote a crummy tax code. The problem arises from having a corporate tax cut that is twice what Canada’s is and nearly three times what it is in Ireland. Money goes where it’s welcomed, and money has been flowing overseas. I don’t fault corporations for doing what they’re supposed to do, which is maximize their profit.”

Daniel J. Mitchell

Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy at the Cato Institute.
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