Milken Institute: Cutting Corporate Income Tax would raise GDP
Howard Richman, 1/31/2010
On January 26, the Milken Institute issued a research report entitled Jobs for America: Investments and Policies for Economic Growth and Competitiveness. They analyzed several proposals for enhancing the American economy, and concluded:
• Reducing U.S. corporate income tax rates to the current average of OECD countries (from the current 35 percent to 22 percent) stimulates growth. By 2019, real GDP rises by 2.2 percent (or $375.55 billion) and 2.13 million jobs are created.
• Increasing the R&D tax credit by 25 percent and making it permanent enhances American innovation. By 2019, real GDP rises by 1.2 percent (or $206.3 billion) and 316,000 manufacturing jobs are created.
• Modernizing export controls on commercially available technology products for some countries would allow U.S. firms to capture increased international market share. In this scenario, real exports of goods and services rise by 1.9 percent (or $56.6 billion), and 340,000 jobs are added by 2019 (160,000 of them in the manufacturing sector).