Scandinavia is supposed to be a democratic socialist model for America: a land of low poverty, free college, and free health care. That comes with higher taxes—but not across the board. The governments of Denmark, Sweden, and Norway all understand that relatively low corporate taxes are better for productivity, and thus better for society.
President Joe Biden disagrees. He wants to raise trillions for infrastructure spending by hiking America's corporate tax rate from 21 percent to 28 percent. Denmark and Norway, by contrast, have a 22 percent corporate tax rate, while Sweden's sits at 20.6 percent.
Indeed, the U.S.'s current corporate tax rate already puts it right in line with some of the most centralized welfare states—the very same ones that politicians like Sen. Bernie Sanders (I–Vt.) tout as an end goal.
Prior to 2017, the U.S. corporate tax rate was a stratospheric 35 percent, the highest in the developed world. That year's Tax Cuts and Jobs Act lowered corporate taxes to the current rate, which many panned as a boon for the wealthy.
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President Joe Biden disagrees. He wants to raise trillions for infrastructure spending by hiking America's corporate tax rate from 21 percent to 28 percent. Denmark and Norway, by contrast, have a 22 percent corporate tax rate, while Sweden's sits at 20.6 percent.
Indeed, the U.S.'s current corporate tax rate already puts it right in line with some of the most centralized welfare states—the very same ones that politicians like Sen. Bernie Sanders (I–Vt.) tout as an end goal.
Prior to 2017, the U.S. corporate tax rate was a stratospheric 35 percent, the highest in the developed world. That year's Tax Cuts and Jobs Act lowered corporate taxes to the current rate, which many panned as a boon for the wealthy.
Scandinavia Understands the Value of Low Corporate Taxes. Why Doesn't Joe Biden?
The president's proposed tax hike would fall on workers. This isn't a controversial point.
reason.com