September 29, 2008

TAX COMPETITION:

With the economy struggling, at least some people are urging a pro-growth tax cut. Too bad they live in Stockholm. As a recent headline in Agence France-Presse put it: “Sweden Announces Income Tax Cuts to Boost Jobs.” The government is planning to cut business taxes and the personal income and payroll tax. . . .

Now, however, Sweden is discovering that it must cut taxes to compete with Ireland, Eastern Europe and fast-growing Asia. Three years ago Sweden eliminated its inheritance tax.

I wonder if this will percolate into the U.S. debate? Is it a global tax revolution?