When it comes to the issue of lowering the corporate tax rate,
one think tank says Sweden shows more understanding than the U.S.,
which maintains the highest rate among developed countries.
For the second time in three years, the Swedish government says
it is lowering its corporate tax rate, this time from 26 percent to
22 percent -- 13 percentage points lower than the U.S. rate of 35
Tom Giovanetti of the non-profit, non-partisan Institute for Policy
Innovation (IPI) adds that Americans can pay even more in
"That's just the federal rate," he explains. "Companies also pay
the state tax rate, and if they happen to be so unfortunate as to
be based in New York City, they actually pay a city income tax
Giovanetti says today's newspapers, television and radio
programs are full of people complaining about jobs being shipped
overseas, but the "dirty little truth is that it's our fault that
this is going on, because of our high tax rates."
"If you hire people in the United States and make a profit and
have to pay a 35.6-percent tax, or if you do it over in Ireland and
you pay a 14-percent tax, than who wouldn't choose to do it in
Ireland?" he asks.
The Wall Street Journal points out that even
though Sweden is lowering its corporate tax rate, that country has
presented a budget grounded in higher government spending, while
other European governments are trying to curb expenditures.
Giovanetti says the Journal is correct, but Sweden is
beginning to ratchet that down. Meanwhile, Sweden's finance
minister is not ruling out further cuts to the corporate tax