A few weeks ago, it was quite revealing — but not surprising — to hear Treasury Secretary Jacob Lew imply that corporate America should willingly pay the highest corporate-tax rates in the world as part of its “patriotic” duty. This kind of discourse demonstrates a profound misunderstanding of capitalism, which is an important component of American exceptionalism.
In our system, people do not go into business, in many cases risking everything they have and more, in order to support the government. They obviously take those kinds of risks to make money. Instead of chastising American businesses for making financially prudent overseas investments, a wise and understanding government would be creating a domestic environment that is conducive to investment, innovation and growth, reducing the appeal of foreign explorations.