The U.S. has the world’s highest corporate tax rates, driving many corporations overseas and preventing others from ever starting.
Yet “progressive” politicians continue to demand that corporations be taxed even higher.
Puerto Rico’s economy provides a vivid illustration of what happens when a government hikes corporate tax rates.
Puerto Rico is in default on its debts, the result in part of the elimination in 2006 of a favorable tax break for U.S. companies that sent many of them packing. Since then, a long-running recession has sparked an exodus of companies and skilled workers.