Let me ask you a question:

You live in State 1, near the border.
If you moved across the border to state 2 you could cut your taxes by 50%.
You keep your same job, at the same pay, but cut your taxes 50% by moving 10 minutes away.

Would you do it?

If you said yes, then you understand why Haliburton moved. There is no federal corporate income tax, only the equivalent of state corporate taxes. If Haliburton moved into one of the Dubai Tax Free zones, then they cut their taxes 100%

Would you move to the next state if you never had to pay taxes again? Plus your highest paid workers get out of many of the employment taxes.

Welcome to the global age. The USA has the 2nd highest corporate tax rate in the world. The only one higher is Japan (except in some USA states with high state taxes), and they've been in a slump since 1986, despite how well Toyota and Honda have been doing.

Most 1st world nations with lower tax rates actually collect more money, usually because taxes are fair and across the board. But stumping for lower taxes on corporations doesn't get politicians elected. The average voter is too ignorant to see the bigger picture. It's a basic law of economics (Law of diminishing returns) combined with basic politics (special interests and political donations = loopholes) with a helping of voter ignorance/apathy.

California has a $22.2 billion (and growing) deficit, just lost a lawsuit and has to pay for $8 billion in prisoner health care, and for over 8 years despite immigration and colleges churning them out, has suffered a *loss* of college educated citizens as jobs have grown more technical. Texas, with zero state corporate tax, zero personal income tax, a tough property tax that acts as a disincentive against property speculation, has a growing economy and a surplus.
Data source: http://www.cbpp.org/1-15-08sfp.htm

We don't need any more studies, real life has given us the answer: Lower, fair taxes free of loopholes work the best. Just remember who is at fault: The average American voter who does not take the time to
- educate themselves
- vote 99% of sitting politicians out of office.
- Support only 3rd party candidates or fresh, new dems/repubs that stick to fiscal discipline and what's best for the country first.

America the Uncompetitive