Everyone knows if tax rates are lowered government collects less in taxes… that is the conventional wisdom. It certainly was much of the rhetoric in opposition to lowering corporate income taxes (CIT), but since the tax rate was lowered what has been the outcome?
While CIT rates have decreased significantly across the covered 88 jurisdictions since 2000, average corporate tax revenues — both as a percentage of total tax and as a percentage of GDP — have increased slightly, according to data from The Organization for Economic Co-operation and Development (OECD).
OECD reports data on the tax burden on labor across 35 developed countries, including the United States. Research by the OECD has found that corporate taxes are the most harmful form of taxation for economic growth.