Cutting US corporate tax is worth the cost

Benefits of cutting the corporate tax rate will more than offset the adverse effects normally attributed to Budget deficits

The United States Congress is close to enacting a major tax reform. The plan’s most important provision reduces the corporate tax rate from 35 per cent to 20 per cent – from the highest among all OECD countries to one of the lowest – and allows US companies to repatriate the profits of their foreign subsidiaries without paying additional US taxes. Opponents of the legislation point to the resulting increase in the federal Budget deficit, which will add $1.5 trillion to the government debt over the next 10 years.

I dislike Budget deficits, and I have long warned about their dangerous