Canada’s C.D. Howe Institute has a new report that shows the US has
the fourth highest effective tax rate on corporate investments, behind
only China, Canada, and Brazil. The report, Attention G-7 Leaders: Investment Taxes Can
Harm Your Nations? Health
(PDF), looks beyond corporate income taxes to include other taxes on
investments as well. The authors cite, “a 2001 study by economists Dale
W. Jorgenson and Kun-Young Yun [which] suggested that replacing
federal, state and local personal and corporate income taxes in the
United States with a flat tax that excluded investment income would
create an economic gain of over $2 trillion.” Online at cdhowe.org. Thanks to Financial Times.