Why Cutting the US Corporate Tax Rate Is Good Foreign Policy

When Ronald Reagan slashed tax rates in America in the 1980s, the obvious direct effect was more prosperity in America. But the under-appreciated indirect effect of Reaganomics was that it helped generate more prosperity elsewhere in the world. We may be poised for a new virtuous cycle of tax competition. A big drop in the U.S. corporate tax rate will pressure other nations to lower their taxes as well.