Mark, while I am, naturally, all in favour of reducing corporate income taxes and keeping the capital gains tax low, I doubt if such moves would have any short-term impact on the current liquidity freeze. As for attracting additional foreign money right now, I doubt it. Rightly or wrongly, such moves would be seen as increasing the government’s budget deficit (again, at least in the short-term) and, if I had to guess, would weaken the dollar and thus make it a less attractive currency in which (directly or indirectly) to invest. Don’t get me wrong – low taxes are an essential, but tax cuts of the type you suggest won’t do anything to solve the immediate crisis.
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About the Author
Andrew Stuttaford is the editor of National Review's Capital Matters.
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