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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (351281)9/20/2007 5:02:41 PM
From: TimF  Read Replies (1) of 1576226
 
If you have lower taxes on investment in some areas than others, than all else being equal investment will tend to shift to the lower taxed areas. Of course all else is not equal, but higher tax rates on investment are still a competitive disadvantage at the margin. Even if other advantages more than make up for it, there is no need to give ourselves that disadvantage.

Also its not just a matter of comparisons to other countries. Higher taxes on investment don't just shift and distort investment they also tend to reduce it. Even if they other countries didn't exist or somehow didn't effect decisions made in or about the US in any way, higher taxes on investment would still be a bad thing for the US.
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