Is it true that that corporate taxes are most harmful for growth?

Question

http://online. wsj.com/article/ SB12187557058504 2551.html? mod=googlenews_ wsj

"A new OECD study, 'Taxes and Economic Growth,' examines national tax burdens and their impact on growth and incomes in member countries. It concludes that 'corporate taxes are most harmful for growth, followed by personal income taxes, and then consumption taxes.' The study adds that 'investment is adversely affected by corporate taxation,' and that the most profitable and rapidly growing companies tend to be the most sensitive to high business tax rates."

Answer 1

Some people might think so.  Others might not.

Answer 2

1. all taxes hert the ekonomy

2. if sumwon sae tax x is badder than tax y, its his pinyun

Answer 3

"most harmful for growth"? No.

Economists have long stated that the double-taxation in corporate tax structure leads to inefficiencies, but so do lots of other things, ranking just which is worse is a very obscure area.

Some other characteristics of tax policy which harm investment and growth:

1) Variability. Tax rates and policies that move around every 18 months impose a large "uncertainty" variable into calculations. If you don't know what your tax rate will be in 3 years, how can you properly calculate the present value of a cash flow from that time?

2) Complexity. Time, money, energy and brains devoted to tax law and accounting are essentially a waste; a person who's smart enough to be able to figure out how to allocate income to Bermuda rather than to the US would be smart enough to do other more economically productive things.

The question of precisely which thorny tax issue is most pernicious for growth is not a question with a simple answer.