I don’t think we even need to go as far as Larry Kudlow advises in his post at RealClearPolitics:
Thankfully, there’s a way out of this mess. Let the Fed keep interest rates and the dollar stable. No more tightening. Meanwhile, the Republican Congress can pass a significant tax cut for large and small businesses. Push the rate down to 15 percent for C-corps and S-corps. Provide easy repatriation of U.S. money overseas. And permit immediate tax write-offs for new-business-investment expenses.
Congress could also push for reduced regulatory burdens, although it looks like there’s no stopping the Obama administration’s unconstitutional march toward even greater regulations.
But a big business tax cut would be the most stimulative way to move the economy from near recession to 4 or 5 percent growth. That’s what we need. Put it together with a stable and reliable dollar, and we can move from pessimism to optimism.
While I presume I agree with Mr. Kudlow that the optimal business income tax is zero, I don’t see any way that will pass the Senate but here’s something that might. Bring our corporate income tax laws into line with the rest of the OECD countries. Reduce our rate to a level just below Germany’s 15% and stop taxing overseas earnings.