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Submitted by Joe Powell on

The theory of reducing corporate income tax rates as an incentive to attract more business along with an overall increase in tax revenues and employment is sound. However, there is a caveat-when exercising this practice in less than developed, underdeveloped and developing countries, other factors come into play at different levels
that counteract the positive benefis gained by simply reducing or rearranging the corporate tax rate, i.e., long-term political stability, crime rates, infrastructure health, continued access to markets, etc. These aforementioned factors do not however negate the positive benefits of tax competition among countries whatsoever.