Useless because if our economy grows to twice the current size, does the cost of government really grow twice as expensive? That’s the logic that led to states like Florida having massive tax booms because of the rising property values. Instead of keeping costs level or growing with population and inflation, they simply found new ways to spend billions more. Extra income is no excuse to find new ways to spend money.

Misleading because it make the tax rates in the USA sound competitive and inexpensive, which is far from the truth. World Bank and PricewaterhouseCoopers did a study published as “Paying Taxes 2008: The Global Picture”. What they found from the 178 nations researched in the study is that 101 of them have lower tax rates than the US, 121 of them had tax codes that took less time to comply with.

The global movement in corporate taxes is downward, and significant tax reform is happening internationally. 31 countries in the past year and 65 in the last three years have either reduced the corporate tax rate (most popular), or made compliance easier by simplifying or eliminating some business taxes.

When a large investor is looking for a country to invest their money in, is the US a good choice? When a large multi-national company wants to make a new factory, is the US a good choice? Not when 101 other countries have a lower tax rate than we do. Our corporate tax code/mindset is destroying our ability to be competitive on the international level.

In years past perhaps it didn’t matter as much, the US was the dominant nation on earth. But with so many emerging nations, the European Union, and China becoming economic powerhouses it is simply a matter of time before the US becomes an afterthought, if we fail to act.