>Competitive tax cuts risk holding back governments in spending on anything from defense and infrastructure to health and education, Lagarde said.
From what I've seen from Bush tax cuts, it doesn't deduct from the services but add to the debt. Of course that's bad too, but in a different way.
That race already existed and Ireland (among other EU havens) were winning.
We've had a race to the bottom, that's an unintended consequence of globalism. Why do you think companies like Apple are in Ireland? Why do manufacturing plants moved to South East Asia? The difference here is that the United States is finally taking part, and we're doing so by simply catching up with the rest of the world. The alternative is having more and more corporations leave the United Sates.
If you want to avoid a race to the bottom in a global economy you have an international standard for corporate taxes and equilibrium wages but good luck having everyone agree to that.
Most of Europe are below the new lower US corporate tax rate. If there is a race, then it was already ongoing and the USA only reacting.
Maybe if these jerk politicans were more interested in actually serving the public instead of living a rock and roll lifestyle on our dime, the already substantial money we give them would be enough without having to tax the living daylights out of us. But what do I know?
We should always do what the IMF says because international bankers always have the common citizens best interests at heart.
God forbid we...
Cut spending! [Gasp!@!!!]
Maybe we can start by lowering defense budget by stop being the world's military. Maybe we can trim fat by streamlining bureaucracy and getting rid of unnessesary and bloated government workers. Maybe we can cut down of horrific government management by holding those extra workers that fuck up massively but then people blame the president (whether Trump, Obama, Bush)
It isn't all or nothing. It isn't "we tax all the fucking money" or "we tax nothing, the entire country is going to fucking die with people starving in the streets".
Until we become fascist enough to force companies to not leave, sadly, we have to entice them to come back by throwing them a bone. Companies being here is better for anyone. A low tax is better than no tax when they put everything in and offshore account.
I think services are good. The help they provide makes it so that even the poorest people in America are better off than the poor in any point in history. That's fucking amazing. But there is room for improvement, but throwing MORE MONEY, ALL THE RICH PEOPLE'S MONEY is not how it will work. Education has been thrown more and more money for decades and it only seems to get WORSE. Why? Remeber that story of the teacher getting arrested for speaking out against a superintendent getting another raise? Yeah that's why. People like that board and the superintendent are why. Just throwing money won't solve anything. You have to get in and trim the fat. Fire that board, fire that superintended and maybe teachers won't have to buy their own fucking PRINTING PAPER
Trump won't do it. He physically can't do it, not to mention most people don't even have faith in him to do it. He's not much more than a meme machine that was voted into office out of sheer SPITE. Nor can Washington do it. America and her government is just too fucking big. They can't know every little nobody that goes on a power trip and ruins what could have been a good idea if not for horrific management.
But you know who knows? Your state capital, your govener your mayor. You know why European nations can pull off these very desirable services that fit well to their population? It's becuase they are the size of 1 state, and they know the people. Your local government has more of a hand in affecting your life than Trump ever could, people just forget.
Get educated, learn your representatives names, learn who your govener is and who your mayor is. Wanna protest something governmental? Instead of standing out in the street, protest the capital. Email them. Get as involved with them as you do with Trump. It's kind of been working, some cities have been adopting the Paris Climate Agreement on a local level, and that fucking fantastic! This is how it should work. Keep going and get involved. I emailed my senators about net neutrality and they both said they weren't going to fight for it. Guess who I'm not voting into office again and who I'll socially campaigne against?
TL;DR cut the bureaucracy, and get involved on a state level. Fuck Trump, you, the average joe, can't reach him. But you can reach your state capital and city mayor.
Corporate tax rates in Europe average 16%. Someone should tell them to raise them.
How is lowering our corporate rate to be in line with other countries a big deal?
Holy crap the amount of terrible economists in this thread is amazing.
The IMF have been wrong about almost everything for the past 2 decades. Actually, not wrong about everything but certainly they've had no better prediction powers than Paul the Octopus.
They missed the last financial crisis completely.
I thought that creating a race to the bottom was the whole point.
It will also trigger inflation.
Good luck with that while you down in debt and riding interest rates.
Trump is no economist. And it shows. He is ruining USA, alsomthe economy.
So what it seems to me is that the IMF is afraid that the tax cuts would actually work and attract much new business to the US, which would pressure other countries to do the same. Seems to me the IMF is afraid of economic success because it can be emulated. Looking at the history of the IMF and it's criticism and no wonder. The IMF likens itself as a global finance ministry.