A Corporate Tax Rate of 70% or Higher?

Washington bureaucrats get corporate taxes wrong

Washington’s tax bureaucrats want you to believe you can tax your way to prosperity. History says otherwise. The Congressional Research Service’s April 21 report, “Corporate Taxation: The Revenue-Maximizing Tax Rate,” uses a model to estimate the corporate tax rate at which corporate tax revenue is maximized. Under its baseline assumptions, that peak occurs at roughly 70% or higher. The exercise is explicitly narrow, as it only examines corporat…

A Corporate Tax Rate of 70% or Higher?

Every time we think we can’t hear anything more absurd out of the logic-free zone of Washington, we’re proven wrong. Here is the conclusion of a new looney-tunes study from the Congressional Research Service, the policy analysis arm of the House and Senate: Simple theoretical insights indicate that a revenue-maximizing corporate tax rate is much higher than either the current 21% rate or the 35% rate before the 2017 rate cut. Such a rate is prob…