I don't understand this about taxes. If you look at our tax rates in the US, we have very high corporate taxes but low-to-mid personal income taxes with a very low VAT: http://en.wikipedia.org/wiki/Tax_rates_around_the_world http://en.wikipedia.org/wiki/Image:Income_Taxes_By_Country.svg As I compare countries, especially the new and rising economic stars (Ireland, China, India, etc.) and compare their tax rates with those of the US, I see no pattern. It almost seems that tax rates do not matter. Some solid economies have higher tax rates, some lower. So then I'll ask the obvious: what's the incentive for governments to lower tax rates if it seems to make no difference to the economic bottom line?