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I'd like us to think more about this:


lower taxes = protectionism

It might be a way to create a "wedge issue" like the Americans like to say. The downwards spiral of taxes is either empoverishing everybody for the short term profit of transnational companies, or amounts to stealing jobs from your neighbors.

Protectionism.

Do you think that could work?

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Apr 6th, 2006 at 11:04:33 AM EST
You make it sound like a bad thing.
by Colman (colman at eurotrib.com) on Thu Apr 6th, 2006 at 11:05:04 AM EST
[ Parent ]
I still think it's a bad thing, mostly. But more importantly, they think it's a bad thing. The idea is to associate the conept they love (lower taxes) with one they villipend all the time ("protectionism").

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Thu Apr 6th, 2006 at 11:33:05 AM EST
[ Parent ]
You can also wrap your own efforts in their positive concepts - reform, transparency, etc. Who can be again reforms to bring more transparency to corporate taxes, mmm? Reform has to be good for corporations, no? They are always asking for reforms. Let's give them reforms...

I think it holds especially true in that specific case as the issue is not so much the marginal corporate tax rate but recognition of taxable income. One thing really made me gasp for air in your quote:
The countries with the highest tax rates were Japan, with 40.69 per cent, and the US with 40 per cent. At the bottom of the scale was the Cayman Islands with a zero corporate tax rate.
No corporation in the US pays an effective 40% percent tax rate or anything close but rather 10 or 15% for the least "talented". That's because corporate tax cuts don't come under the form of rate cuts but under the form of exemptions - what is taxable and what is not.
by Francois in Paris on Thu Apr 6th, 2006 at 11:48:24 AM EST
[ Parent ]
Reform has to be good for corporations

Must be good stuff you're smoking...

Why would corporations need reform? They are slimmed down and wickedly honed by Competition. Market Forces™ oblige them to be Efficient and lean. Optimal Organization and Cost-Efficiency everywhere. 10-15% tax paid instead of 40% -- that's a good example you cite.

It's the rest of society that needs reform to adapt to corporate reality, an' dat's de troof.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Apr 6th, 2006 at 03:32:54 PM EST
[ Parent ]
I'm sure corporations can do better with more Reforms. Reforms are good ! Reforms are clean and healthy !

Now available with the new Enhanced Reform+TM formula for a whiter whitewash and bring a ray of sunshine in your corporate lives :>
by Francois in Paris on Thu Apr 6th, 2006 at 04:10:13 PM EST
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I'm sure of one thing: the ones who are all for the single market and the Commission fighting for free trade within the Union, and the ones who refuse to admit any outside meddling in a nation's sovereign right to dictate its own fiscal and social policies, are the same people.

They're all for the Union on the one hand, and for national sovereignty on the other.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Apr 6th, 2006 at 03:41:36 PM EST
[ Parent ]

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