As word began leaking out from the White House that President Donald Trump would soon propose a drastic tax cut for American corporations, the headlines were predominately spelling disaster. While the cut from 35-percent down to 15 is a drastic one, it should come to know surprise seeing that it was a key talking point of the Trump campaign in 2016. Instead of calling it dead on arrival or a precursor to economic collapse, might we take a look at tax rates of some of the worlds other leading countries and their economy and see what has worked?
Germany is home to unarguably one of the strongest economies in this world, with a record high trade surplus worth $310 billion. It is also the third largest exporter of goods and services valued at $1.27 trillion. And not only are the unemployment numbers at their lowest since the reunification of the country in the 1990’s, Germany also manages to be the wealthiest country in Europe and is the second wealthiest in the world after America.
So what are German corporations paying in taxes? 15-percent… the same as Trump’s proposed rate.
Does this mean that the lowering of our corporate tax rate will lead to the same success as Germany? There are an endless amount of factors that still come into play, some leading to crumbling economy, so you can’t just cut the tax rate, sit back, and wait for positive results. But might spelling disaster on the rate alone be a little overkill?