Kudlow: More Mustard Seeds

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It's my understanding that corpoate taxes as a percentage of US government revenue have fallen into single digits compared to the approximate 20% of revenue 50 years ago. True or false? I also understand that although corporate tax rates are 35% "on the books" that corporations actual rate (due to intelligent book keeping) when compared to profit is MUCH lower. True or false? Do you have some specific %, I am an American History teacher trying to find some answers. Thank you.

Stephen A. Grigas of LA 2:45PM December 18, 2008

The key is to regulate markets better so this does not happen again.
Indeed, we have examples of regulatory regimes that work quite well in this regard. You will never see a speculative bubble in North Korea, for example.
Is that what you had in mind, Muser?

Max of 12:07PM December 18, 2008

Larry describes the recent drop in commodity prices, especially oil, as a "tax cut" for both businesses and consumers.
Very astute. Free enterprise occasionally allows speculators and even foreigners to TAX US as much or more than government does. This was certainly the case in the run-up to $145 oil.
The key is to regulate markets better so this does not happen again, and so we can otherwise afford sensible actual taxes to fund our government and level out the disparity of incomes between lords and serfs.

Muser of 11:20AM December 18, 2008