No Country Has Ever Taxed Itself Into Prosperity

everything is up where is the value

Violent protests have erupted in the streets of Bogota, Cali, and other cities in Colombia. The immediate cause? Proposed reforms to the South American country’s tax system, which would have lifted taxes on everything from salaries and dividends to fossil fuels, single-use plastic items, and more.

According to reports, the protests have involved citizens of all walks of life, including truckers, taxi drivers, and health care workers. Overworked doctors, nurses, and paramedics have walked off the job to bring attention to salary delays.

In response to the unrest, Colombian President Ivan Duque announced on Sunday that he was withdrawing the tax reform proposal. The country’s finance minister resigned the following day.

But the protests continue, just as they did in Hong Kong in 2019 and 2020 after a controversial extradition bill was canceled. At least 24 Colombians are believed to have lost their lives so far during clashes with police.

Money Flows Where It’s Respected Most

It’s against this incendiary backdrop that U.S. lawmakers are having their own tax reform debate.

President Joe Biden seeks to make a number of adjustments to the tax code, including raising the top income rate to 39.6%. The tax on capital gains, currently at 20%, would be doubled. And corporate taxes, which were lowered to 21% in the Tax Cuts and Jobs Act of 2017, would increase to between 25% and 28%.

home prices rose at fastest pace since 2006 in february

Before 2017, the top U.S. rate on corporate income was 35%, making it one of the highest rates in the world—higher, even, than Mexico, France and Brazil. I and most other executives celebrated the change because it made the U.S. far more competitive as a place to do business in. As I’ve said many times before, money flows where it’s respected most. Around the time of the tax bill’s signing, private business investment in the U.S. came rushing back, before stalling in late 2019 as the global economy slowed and articles of impeachment against President Donald Trump looked more and more likely.

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James Hanshaw 1 month ago Contributor's comment

We taxed our way into prosperity in Switzerland via low taxes!

Carl Schwartz 1 month ago Member's comment

USA had 90% top bracket. Had plenty of prosperity.