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First off I'd like to echo the notion that national competitiveness is a joke. Companies are competitve or not. But countries don't compete with each other, and Japan's gain is not the loss of the US or Canada or anyone else.

That said, in a global economy it seems crazy to have "uncompetitive" corporate tax rates when it ought to be painfully obvious by now that companies have a high degree of flexibility on where to locate new investment.

Also, in a mythical closed economy high corporate tax rates make no sense either. In fact, one can argue they shouldn't be taxed at all. Ultimately capital, both physical and human, along with innovation are the driving force of economic growth. Also, although the Scandanavian countries may beg to differ, ultimately it is companies that employ people, not government. Put them together, and between companies being a huge driver of capital creation, innovation, employee training, and of course employment, and one wonders why any government would deliberately diminish this fabulous resource via taxation.

With company earnings mostly going towards reinvestment, and individual earnings going mostly towards current consumption, taxing the latter seems much the better course for long run income growth and long run employment.

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