World's Major Economies Have High-Tax Handicap: C.D. Howe Institute
Toronto, Canada (ots/PRNewswire)
Many of the world's largest economies have a common malady handicapping their abilities to generate jobs and government revenues, according to an e- brief released today by the Institute. From the United States, Germany and Japan, to other engines of the global economy, they tend to have high corporate income tax rates that blunt their competitiveness, making it harder for manufacturing and service businesses to adopt better technologies that would boost workers' incomes. Except for the United Kingdom, which is committed to reducing its corporate tax rate to 28 percent in 2008, most of the world's major economies rely on corporate rates in excess of 30 percent These high rates hurt competitiveness, because when investment moves to low- tax jurisdictions, prospects worsen for economic growth and job creation These high tax rates also hurt government revenues, say the authors, Duanjie Chen, Jack Mintz and Andrey Tarasov. The e-brief, "The High-Tax handicap: How the World's major Economies Shoot Themselves in the Foot with High Corporate Income Tax Rates," is available at http://www.cdhowe.org/pdf/ebrief_49.pdf.
Contact:
For further information: Jack Mintz, Professor of Business Economics;
Joseph L. Rotman School of Business, University of Toronto and
Fellow-in-Residence, C.D. Howe Institute,+1-416-978-2451; Finn
Poschmann, Director of Research, C.D. Howe Institute,+1-416-865-1904