Good money was as important as across-the-board tax rate reduction.
The parties honorably and ardently can compete for the better plans for economic growth, and should as they did in the 1980s with competing income tax rate reduction proposals.
Notwithstanding dramatic tax rate reduction, by the tail end of the Clinton administration, and under George W. Bush, the world economy was plunged by a degenerating monetary policy into over a decade of economic stagnation.
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It provides support for arguments by U.S. companies that they face a competitive disadvantage in the U.S. marketplace, since most non-U.S. multinationals except Japan already have lower taxes before the added bonus of an effective tax rate reduction when they establish an American subsidiary.
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These things are well worth the price for the short- and long-term power of tax-rate reduction, sound currency and unclogged credit arteries.
But more importantly, it is a magic that works beautifully, by accident, in a way Keynes did not forsee, when it operates through policies of tax-rate reduction.
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The letter cites a recent study finding that in 2007 more than 27 million tax returns had dividends qualifying for the tax-rate reduction, and of those, 30% were from taxpayers age 65 and older.
Taking nothing away from the incentive and revenue effects of tax-rate reduction (the mantra of supply-siders), for the modern Classical thinkers to support Obama's small-business tax cuts is for them to endorse further complexity within of our tax code, in which we ascribe to politicians the power to use taxation as a way to drive specific behavior.
Thirteen of the 17 countries with enough observations to compute annual effective tax rates in both 2009 and 1999 experienced a reduction in their tax rate with a median decline of 5 percentage points.
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If the federal estate tax is not repealed, 2012 changes would likely include a reduction of the maximum estate tax rate from 55% to 45% or perhaps 35%.
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But Apollo has two other strikes against it: It relies heavily on stock options to compensate employees, and it enjoyed a reduction in its tax rate in 2001, a source of earnings growth that is unlikely to last forever.
And this makes sense, because in general, the middle class are more dependent on things like mortgage interest and state and local tax deductions than their wealthy brethren, and the elimination of those deductions would have punished those taxpayers to a greater extent than they would have benefited from the 20% reduction in their tax rate.
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Fox's response: a gradual reduction of the corporate tax rate to 30% from 34%.
Alarmed by Japan's rapidly mounting debts, the ministry wants any reduction in the corporate tax rate to be balanced by a broadening of the tax base.
The second change is that, in return for agreeing to a reduction in the corporate tax rate, the Ministry of Finance is closing a number of loopholes.
No, really: if you work 25 hours a week on the minimum wage then your marginal tax rate is, without even considering any reduction in in work benefits, over 40% when you include both income tax and national insurance.
This week, the Nihon Keisai, Japan's main business daily, reported that the mandarins want to eliminate many tax exemptions, such as those for loss-making companies and reserves set aside for bonuses, to offset the proposed 2.5 percentage point reduction in the nominal tax rate.
Instead, he wants to reach an agreement with Democrats on a framework or bridge that would postpone the cuts and tax-rate changes for one year until a broader deal on deficit reduction -- including entitlement and tax reform -- can be worked out.
The hope is that a flat-rate income tax of 16% and a reduction in company taxes will kickstart growth.
By low-hanging fruit, I mean things like a reduction in the corporate income tax rate that would immediately bring home profits and jobs.
Mr. Barthold ran an experiment in which he eliminated some major tax expenditures and measured how much of a rate reduction that would permit while remaining revenue neutral.
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But unless all of the costs fall on the top 5 percent who benefit from the rate cut, any reduction in tax expenditures must raise taxes on low- and middle-income households.
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Americans for Tax Reform claims that 205 House candidates and 36 Senate candidates, and 174 sitting House members and 34 sitting senators (there is obviously some overlap here) have signed its anti-tax pledge no tax rate hikes under any circumstances, and no reduction in deductions or credits without offsetting cuts in rates.
Remember that tax credits are a dollar for dollar reduction in taxes which can be fairly significant, depending on your tax rate.
He may also signal a further reduction in the rate of corporation tax to 20p.
The economic slowdown in the UK as well as a reduction in the rate of corporation tax have led to a 17% drop in corporation tax payments since 2005.
As the Tax Policy Center demonstrated, there simply are not enough deductions to eliminate in order to offset the gross tax savings resulting from a reduction in the top rate to 28%.
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Assume, as many now expect, that Mr Osborne announces a phased reduction in the top rate of income tax from 50p to 45p, starting in April 2013.
So it looks like the next reboot will not be nearly as much fun as the Tax Reform Act of 1986 when it comes to the rate reduction part.
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The study suggests that each reduction of one percentage point in the marginal tax rate could increase the number of new businesses by as much as 2%.
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