On Friday, I blogged (U.S. v. OECD Tax Rates) the Tax Foundation’s new report, U.S. Personal Income Tax Rates: How Do We Compare in the OECD, and Where Are We Going?.  The Wall Street Journal has endorsed the report in an editorial, We’re Number One, Alas:

At least 25 developed nations have adopted Reaganite corporate income tax rate cuts since 2001. The U.S. is conspicuously not one of them. …

All of which means that the U.S. now has the unflattering distinction of having the developed world’s highest corporate tax rate of 39.3% (35% federal plus a state average of 4.3%), according to the Tax Foundation. While Ronald Reagan led the "wave of corporate income tax rate reduction" in the 1980s, the Tax Foundation says, "the U.S. is lagging behind this time." Foreign leaders are also learning another lesson: Lower corporate tax rates with fewer loopholes can lead to more, not less, tax revenue from business. The nearby chart shows the Laffer Curve effect from business taxation. Tax receipts tend to fall below their optimum potential when corporate tax rates are so high that they lead to the creation of loopholes and the incentive to move income to countries with a lower tax rate.  [Click on chart to enlarge.]

Press and blogosphere reactions:

• Angry Bear:
  • Effective Corporate Tax Rates for the Lafferites
  • Luskin Falls for a Real Laffer
• The Conspiracy to Keep You Poor and Stupid:  Caught on Film:  The Laffer Curve, by Donald Luskin
• Economist’s View:    Yet Again, Tax Cuts Do Not Pay for Themselves, by Mark Thomas
• MaxSpeak, You Listen!:  Up and Down the Laffer Curve, by Max Sawicky
• U.S. News & World Report: Global Economy Booms as Taxes Fall, by James Pethokoukis