McCain envisions a far more business-friendly environment. He would halve the 15-percent capital-gains and dividend taxes to 7.5 percent. The 35-percent corporate tax would tumble to 25 percent — a level comparable to average business taxes across Europe. A 25-percent U.S. corporate tax would be more attractive than analogous levies in France (38.4 percent), Canada (33.5), Germany (30.2), or Great Britain and Mexico (both 28). McCain’s corporate tax cuts should lure foreign capital here, like coins to a vacuum cleaner.
Finally, McCain would retire the mind-numbing depreciation tables and let companies expense their capital purchases in year one. Most enterprises subsequently would buy such items when it made business and economic sense to do so, not primarily to obey complex IRS timetables.
As Citicorp’s late chairman Walter Wriston sagely observed, “Capital goes where it’s welcome and stays where it’s well treated.”
ATR’s 401(k) Calculator confidently predicts what should be intuitive: Americans’ investments, like the general economy, will be battered by Barack Obama’s tempest of new taxes, but blossom in the sunlight of John McCain’s far-lighter tax burden.
– Deroy Murdock is a New York-based columnist with the Scripps Howard News Service and a media fellow with the Hoover Institution.
© 2008 Scripps Howard News Service.