Corporate Tax Myths
policyshop.net — In the The Wall Street Journal today, John McKinnon and Scott Thurm revive the zombie of too-high corporate taxes causing businesses to flee offshore. Needless to say, they give too large a megaphone to international outsourcers and too little to their critics. The uncertainty fairy strikes again. The authors go on to make the claim that we need to “rewrite the tax code to give companies an extra incentive to stay in the U.S.” We couldn’t possibly raise taxes or business will flee. But is our corporate tax rate truly pushing companies overseas? This argument rests upon several crucial fables that the McKinnon and Thurm leave unexplored.