Monday, January 07, 2008
Them far-left Dems
It says something about the current state of the Democratic Party when they find themselves to the left of European socialists on taxes:
"Socialist Party Prime Minister Jose Luis Rodriguez Zapatero [of Spain] pledged in December that if re-elected, 'One of the first decisions I would take is to eliminate the wealth tax [up to 2.5%],' which he says is one of the highest in Europe and 'punishes savings.' Mr. Zapatero is no conservative. But he's joining the European march down the Laffer Curve on taxes, having already phased in reductions in Spain's corporate tax rate to 30% from 35% and its personal income tax rate to 43% from 45%.
"Like France and Germany, Spain is cutting rates because of the tax competition from their European Union neighbors such as Ireland and East Europe. There are now at least 11 nations formerly behind the Iron Curtain with flat rate taxes of 25% or lower. On January 1, a new flat tax of 10% became law in Bulgaria, replacing its progressive rate structure and as far as we know the lowest such rate in the world. The newly elected Polish parliament is also planning to cut taxes. ...
"It's getting lonelier all the time at the top for America, which with a corporate tax rate of 35% is one of the few developed nations left with a rate of more than 30%. Economist Dan Mitchell tracks these trends for the Cato Institute, and he finds that 26 developed nations have cut either personal or corporate income tax rates since 2005. ...
"Some of these tax-cutting nations -- such as Estonia, Ireland, Russia, and Spain -- have seen revenues rise even as rates have fallen. This is what turns socialists into supply-siders in Spain, if regrettably not in the U.S."
"Socialist Party Prime Minister Jose Luis Rodriguez Zapatero [of Spain] pledged in December that if re-elected, 'One of the first decisions I would take is to eliminate the wealth tax [up to 2.5%],' which he says is one of the highest in Europe and 'punishes savings.' Mr. Zapatero is no conservative. But he's joining the European march down the Laffer Curve on taxes, having already phased in reductions in Spain's corporate tax rate to 30% from 35% and its personal income tax rate to 43% from 45%.
"Like France and Germany, Spain is cutting rates because of the tax competition from their European Union neighbors such as Ireland and East Europe. There are now at least 11 nations formerly behind the Iron Curtain with flat rate taxes of 25% or lower. On January 1, a new flat tax of 10% became law in Bulgaria, replacing its progressive rate structure and as far as we know the lowest such rate in the world. The newly elected Polish parliament is also planning to cut taxes. ...
"It's getting lonelier all the time at the top for America, which with a corporate tax rate of 35% is one of the few developed nations left with a rate of more than 30%. Economist Dan Mitchell tracks these trends for the Cato Institute, and he finds that 26 developed nations have cut either personal or corporate income tax rates since 2005. ...
"Some of these tax-cutting nations -- such as Estonia, Ireland, Russia, and Spain -- have seen revenues rise even as rates have fallen. This is what turns socialists into supply-siders in Spain, if regrettably not in the U.S."
# posted by Joltin' Django @ Monday, January 07, 2008 
