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Corporate Tax Laffer Curve

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The Sunday New York Times described Apple’s successful efforts to reduce its U.S. and California corporate tax burdens. The article hints that the situation is a moral outrage, and it includes sob stories of governments that are supposedly hurting because they don’t raise enough tax revenues from businesses.

More importantly, the story provides further evidence that corporate profits, investment capital, intellectual property, and reported income are highly mobile in the global economy. Dan Mitchell and I examined these issues at length in Global Tax Revolution.

What should the United States do about the new global reality of footloose...

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