Russia & China Are Cutting Corporate Taxes…..What Do They Know That Our Leaders Don’t

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Source:  The Tax Foundation Blog

The tax changes in Putin’s plan would cut the Russian corporate tax to 20 percent from 24 percent on January 1st and “reduce taxes for small businesses and speed refunds of value-added tax.”

Meanwhile, China—which cut its corporate tax rate to 25 percent this year from 33 percent—recently announced reforms to their VAT in order to reduce the cost of the tax on businesses.

Do the leaders of these countries understand economics better than our current leaders?  It would appear so.  They seem to understand that the best way to stimulate their economies is to let businesses keep more of what they earn.  Business will then invest that “extra” money in various ways:  expanding, new equipment, more employees, better pay to employees, research and development, etc.  This is what Ronald Reagan called “Trickle-Down Economics” (some call it Supply-side Economics) and it is the only way we can dig our way out of the mess that our country is now in.

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One Response to “Russia & China Are Cutting Corporate Taxes…..What Do They Know That Our Leaders Don’t”

  1. jonolan Says:

    What do they know that our leaders don’t seem to anymore? Possibly how to grow an economy.

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