Econ Club: It's about logic, not emotion.

Under the guise of Econ Club, I have sat in many of bars alongside peers and professors, attempting to solve the world’s problems with economic logic. Couched primarily in economic topics, attendees are encouraged to be blunt, using logic not opinion to discuss current events. It is because of the success of these meetings and encouragement from past participants that I am moving Econ Club into blog form. As such, post articles, comment on them and of course keep a refreshing beer nearby.

Monday, June 2, 2008

The Problem With the Corporate Tax

Economic View
The Problem With the Corporate Tax
By N. GREGORY MANKIW
Published: June 1, 2008
A cut in the corporate tax is perhaps the best simple recipe for promoting long-run growth in American living standards.

This is a pretty good article discussing raising gas tax and decreasing corporate tax rates. I like Mankiw and think his logic makes sense. However, I want to know his justification for choosing %25 versus some other percentage. Any thoughts?

http://www.nytimes.com/2008/06/01/business/01view.html?ex=1370059200&en=7fd113219c050aeb&ei=5124&partner=permalink&exprod=permalink