>>I can't escape the impression that this only benefits the ones who already have enough money and does absolutely nothing for the ones who are in trouble right now. It seems this kinds of selfishness that is ruining the US right now.
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>That's an interesting opinion from someone who resides in a country that lowered its corporate tax rate to spur new business and investment:
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http://www.business-int.com/categories/dutch-corporate-tax/dutch-corporate-tax-reduced-to-255-from-1-january-2007.asp>
Dutch Corporate Tax reduced to 25.5% from 1 January 2007
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>Close Move On November 28, the First Chamber of the Dutch Parliament adopted the new corporate tax act entitled "Working on Profit."
Hi tracy... Selectively digging ??.
First of all, this was way before the financial crisis. Second, our tax system is very different, so you can't directly compary it with anything you know. The government also was proposing to increase the VAT from 19% to 20%, but could not get this through because of the financial crisis.
The problem with lowering taxes in the US: This is exactly what got you in trouble the last 8 years. An unhealthy tendency to reduce taxes and increase spending. Up here we've got a little more room than in the US as the situation is not as serious as in the US yet. Your main interest rate is about 0, it has been set to 2% up here. So we've got a little room left here.
I'm not an economist, but trying to compare the economical situation in the US and The Netherlands and the economical measures taken, are comparing appless with oranges.
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>So, from 1 January 2007, the corporate tax rate will be reduced to 25.5%. This rate considerably improves the investment climate for medium to large foreign firms and is lower than the national average of the expanded EU-25 (25.8%) and far below the average of the EU-15 (29.5%). For smaller firms, even lower rates will apply - 20% for the first €25,000 of taxable profits and 23.5% for profits between €25,000 and €60,000. The dividend tax rate has also been reduced from 25% to 15%.
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>"Working on Profit" also includes measures to fuel innovation. Pending approval by the European Commission, a 10% tax rate will apply for income from innovations ("patent box") and financing profits within a group will be subject to a separate rate of 5% ("interest box").
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>This new bill further enhances the pro-business climate in the Netherlands. The existing tax system has many advantages including tax treaties with more than 75 countries, the 30% regulation for foreign employees, and advance tax rulings and pricing agreements, making the Netherlands uniquely suited to foreign direct investment and a premier EU business location.
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>Want more information about expanding or relocating your business? Contact the Netherlands Foreign Investment Agency today to discuss the possibilities.
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>Some more:
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http://74.125.47.132/search?q=cache:xL4NVatuxD0J:www.iln.com/articles/pub_249.doc+netherlands+corporate+tax+rate+comparison&hl=en&ct=clnk&cd=10&gl=us>
>Walter, you are constantly bragging how advanced Netherlands is compared to the U.S. Are you stating that in this case your country made the wrong decision? Has it helped or hindered the economy?
I leave that up to the economists... But you're refering to something that has no relation whatsoever to the financial crisis that reared its ugly head last fall, and not anything earlier.
