Pot o' Gold

Posted on August 08, 2005
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I couldn't have said it better myself. As my predecessor Tom Jenney, vice chairman of the Arizona Federation of Taxpayers, writes:

"In his latest paean to government economic planning ('Ireland could teach us a lot,' Viewpoints, August 7), Arizona Republic columnist Jon Talton argues that Ireland's 'famous low taxes' are not the cause of Irish prosperity in recent years. His proof? 'The Irish corporate tax rate of 12.5 percent is well above Arizona's rate of 6.969 percent.' 
 
What Talton failed to understand is that corporations in Arizona face an average combined national and state tax rate of 42 percent. That's over three times as high as Ireland's rate of 12.5 percent. Indeed, the Irish rate is among the lowest for developed countries, well under the 30 percent average rate for OECD countries.
 
If Arizona politicians want Arizona to prosper and to become more competitive, they should repeal our state corporate income tax. It provides a mere seven percent of state revenue, and causes significant damage to our state economy. Meanwhile, they should petition Congress to drastically reduce the national corporate income tax rate, currently at a very uncompetitive 35 percent."

Key Links:
-Talton: "Ireland could teach us quite a lot"
-Robb: "Big cuts in taxes, spending gave lift"
-Study: Economic Freedom and Growth: The Case of the Celtic Tiger
-Benjamin Powell: "Markets Created a Pot of Gold in Ireland"

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