New economic and tax myths

So much economic nonsense has been generated by the new administration that it was hard to know where to start discussing it. As usual, Robert J. Samuelson provides an excellent starting point. His current article in the Washington Post deals with the taxes that American corporations pay on overseas operations. The truth is that American corporations are taxed more heavily on their foreign operations than almost all of their foreign competitors. Most countries do not tax the profits of their corporations' foreign operations beyond the taxes levied by the host countries. The United States does, though it does provide a credit for the foreign taxes paid. Moreover, there is no empirical vidence that US corporations' foreign operations "export" American jobs overseas. In fact, they are more likely to create additional support jobs here.

As usual, yesterday's tax incentive is today's "loophole."

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