The American Thinker is reporting today that Japan has cut its corporate tax rate from 40 percent to 35 percent in order to spur economic growth. According to the article:
“The DPJ-led government had already unveiled a “new growth strategy” under which it pledged to lower the 40 per cent effective corporation tax rate to a level closer to that of competitor nations – put at 25-30 per cent – during the next decade.”
In response, the Japanese stock market has risen to a seven-month high. Lower taxes result in greater economic growth. Some day we will learn that lesson in America!