Matt Blackman

Statutory vs. Effective Tax Rates

More leftist propaganda from a extremely biased pro-Obama promoter. Thoma conveniently neglects to include the fact that the US is the only industrialized country in the world that taxes its corporations and citizens based on citizenship (not domicile) at US tax rates no matter where it the world they reside. This puts US corporations at a distinct disadvantage compared to corporations from the rest of the world.

Also, his beef about comparing statutory tax rates is groundless. When comparing tax rates it is essential to compare apples with apples which Mankiw does in his article and graph.

This article is in obvious support of Obama's policy that if he becomes president would see US corporate and individual tax rates rise dramatically, especially on US multinationals with operations overseas. This is a decidedly bad idea given that we are in a deteriorating economy.