Financial Times FT.com

Greenspan urges cut in business tax rate

By Eoin Callan in Washington

Published: July 26 2007 22:24 | Last updated: July 26 2007 22:24

The US needs to reduce corporate tax rates to prevent business profits from being squeezed by the rising cost of raising finance through debt and equities, Alan Greenspan, former Federal Reserve chairman, warned on Thursday

“My own view is that the cost of capital is not going to stay down,” he said. “And as it goes up, the top corporate [tax] rate of 35 per cent begins to press.”

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this