December 13, 2007

Giuliani: Let's Increase Corporate Taxes

Well, that's not exactly what he said. But it's apparently what he meant.

In last night's Republican presidential debate (yes, another one) from Iowa, presidential candidate Rudolph Giuliani responded to a fairly open-ended question about fiscal policy strategies by calling for a reduction in the corporate tax rate, which (it turns out) would actually bring in MORE money, not less:
Right now we should reduce the corporate tax. We should reduce it from 35 percent to 25 percent. It would be a major boost in revenues for the government.
In other words, a tax hike. He's almost certainly wrong, of course: there is no credible evidence that corporate tax rate cuts would pay for themselves, let alone providing a "major boost" to tax revenues. But it would have been fun to hear a follow-up question about whether Giuliani really believed what he'd just said-- and, if so, whether the other candidates on the stage would find such a tax hike acceptable.


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