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Corporate tax rates matter for growth. This week’s edition of The Economist features a great chart comparing the U.S. corporate tax rate to the average rate for OECD countries from the early 1980s through 2010. The bottom line is that the U.S. is not very competitive. In 2010, the combined (federal, state, and local) corporate tax rate was just under 40% in the U.S., approximately 10 percentage points higher than the average rate for the OECD. To become competitive again — as it was in the 1980s — the U.S. needs to lower its rate substantially. Tax competitiveness is one recipe for growth.
TARIFF-IED: Trade Talk with Matthew Rooney
Bush Institute-SMU Economic Growth Initiative Director Matthew Rooney breaks down the trade conflict with India.
How Trade Spreads Holiday Cheer
It is projected that the average American household will spend more than $1,000 during the holidays this year.
Deporting Salvadorans May Lead to Economic Decline
We should think carefully about a policy whose major impacts are likely to be reductions in employment and economic activity here at home, and increased instability and lawlessness along our borders.