Since I’ve been in Washington for nearly three decades, I’m used to foolish demagoguery.
But the left’s reaction to corporate inversions takes political rhetoric to a new level of dishonesty.
Every study that looks at business taxation reaches the same conclusion, which is that America’s tax system is punitive and anti-competitive.
Simply stated, the combination of a very high tax rate on corporate income along with a very punitive system of worldwide taxation makes it very difficult for an American-domiciled firm to compete overseas.
Yet some politicians say companies are being “unpatriotic” for trying to protect themselves and even suggest that the tax burden on firms should be further increased!
In this CNBC interview, I say that’s akin to “blaming the victim.”
While I think this was a good interview and I assume the viewers of CNBC are an important demographic, I’m even more concerned (at least in the short run) about influencing the opinions of the folks in Washington.
And that’s why the Cato Institute held a forum yesterday for a standing-room-only crowd on Capitol Hill.
Here is a sampling of the information I shared with the congressional staffers.
We’ll start with this chart showing how the United States has fallen behind the rest of the world on corporate tax rates.