More on Corporation Tax

The FT carries an article which highlights that some (unnamed) officials elsewhere in Europe think that raising the corporate tax rate should be part of the deal. One quote

“They need lots of money and we note they have a corporation tax rate that is very low,” the official said. “Supply must follow demand.”

It may be helpful to reproduce the table I posted last week: the range of variation in  corporate tax revenues to GDP is not that large across the OECD (except for oil-rich Norway). Given the importance of a pro-growth plan and the downside risks to the export sector of varying this tax rate, it does not seem wise for the international debate to focus on this topic.

Corp Tax