Fox's Own On-Screen Graphic Debunks Cavuto's Theory That Low Corporate Tax Rates Are Good For Markets

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Fox’s Own On-Screen Graphic Debunks Cavuto’s Theory That Low Corporate Tax Rates Are Good For Markets

By Lidane

Media • January 2011 • Views: 674

Heh:

Video

So according to the facts — and the information provided by Cavuto’s own graphics — the U.S. has the highest corporate tax rate among any of the eight countries listed (even though the effective tax rate is much lower), yet the U.S. stock performance increased 11 percent in 2010. Meanwhile, Italy’s corporate rate was lower than the American rate in 2010, yet its stock market declined 13 percent in 2010. But according to Cavuto, lower corporate tax rates equals increased market performance.

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6 comments

shutdown Tue, Jan 4, 2011 12:18:05pm

There is no description of the indices used to chart “market” performance. Not all stocks listed on US exchanges are US companies which pay US corporate taxes. I consider the information inconclusive.

Buck Tue, Jan 4, 2011 12:35:46pm

Also…. a gain of 11% is only interesting if we know where it started. IF the start was a very low point, then 11% might be a small bounce.

There was a serious cratering in late 2009. At the start of 2010 the market was just starting to recover.

Close to it’s multi-year high would be a better indicator. Still about 17% down from October of 07 high.

funky chicken Tue, Jan 4, 2011 12:43:12pm

I’ve wondered where all the stories about the “Ireland Miracle” went? The conservatives were all crowing about Ireland a couple of years ago because they slashed corporate tax rates and had what seemed to be great economic growth because of it…until 2010, when everything crashed hard.

Bob Levin Tue, Jan 4, 2011 1:45:44pm

re: #3 funky chicken

Economics is something where specifics matter. So the crash had nothing to do with Ireland’s tax rate. The idea behind low corporate taxes is that businesses will decide to relocate and grow in Ireland. It’s possible that businesses were planning on doing that, until the crash. But it’s also possible that the low rates were not enough of an incentive to go to Ireland. I believe artists don’t pay any taxes in Ireland—which doesn’t lead to better art, but rather, more consumption of liquor and cigarettes.

Amory Blaine Tue, Jan 4, 2011 2:07:32pm

re: #4 Bob Levin

So if artists consume more liquor and cigarettes, two of the most heavily taxed items in the world, how do “artists don’t pay any taxes?”

Bob Levin Tue, Jan 4, 2011 2:32:23pm

re: #5 Amory Blaine

Must be cheap liquor and cheap cigarettes. ;-)

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