COMMONSENSE TAX POLICIES

If we want to obtain long-term economic stability and spur economic growth and job creation, we need to cut the corporate capital-gains tax, Consider:

• Some, like Belgium, Hong Kong, Malaysia, New Zealand and Singapore don't tax corporate capital gains.
• Others such as Japan and the United Kingdom have exemptions when capital gains are reinvested; even France and Germany passed a 95 percent exclusion.
• Only the United States, Sweden and the Netherlands still tax corporate income at the corporate level and then again at the individual level when shareholders receive dividends.
• The whopping 35 percent U.S. tax rate creates a "lock-in" effect of investment capital, meaning that corporate taxpayers are less likely to sell appreciated assets because the high-burden tax makes it far from beneficial. Estimates put the total amount of locked-in assets at more than $3 trillion.

Analyses indicate that full repeal of corporate capital gains would create annual efficiency gains of $20 billion.

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