December 24, 2017
Most economists didn’t accept the view that the corporate tax cuts pushed through by the Trump administration and the Republican Congress would lead to a large increase in investment in the United States. (See, for example, this piece by Larry Summers.) This is why few accepted the claim that the additional growth from the tax cut would offset much or all of the revenue lost.
However, The New York Times appears to have accepted the Trump administration’s view in an article arguing that European countries may start cutting taxes as well in order to remain competitive. The piece presents the views of two top executives of major foreign companies arguing that other countries will have to respond by also lowering their corporate tax rates.
It is not surprising that executives of major foreign corporations would argue that their companies need tax cuts. After all, the political philosophy that rich people need tax cuts goes beyond the United States. The NYT should have included the views on this topic of someone who does not stand to profit in a major way from large tax cuts elsewhere.
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