Part one can be read here.

Factors Weighing in Favor of Repeal

The nominal rate structure of the corporate income tax in the USA was extremely uncompetitive prior to the TCJA. (The lower rate that followed in the wake of the 2017 tax cut act makes the country more competitive, but we still have a long way to go.) Following recent rate cuts in Germany and Japan, the then U.S. top marginal rate of 39.1% was exceeded only by Chad and the United Arab Emirates. Additionally, the United States had the highest corporate tax rate in the OECD. As a counter to these statistics, the argument is made that many large U.S. companies pay far lower real rates than the nominal rates quoted in Section 11 of the Internal Revenue Code. This argument contains accurate facts, but they do not think they prove what proponents hope they prove. The primary lesson to be learned from the fact that Apple and General Electric pay so little corporate income tax is not that high marginal rates cause little deadweight loss, but instead that high marginal rates both create deadweight loss in the resources expended to avoid them and benefit large corporations that have the resources to evade paying that rate which is quoted in the IRC.

In the past thirty years the trend in the OECD, and more specifically in Western Europe, has been to dramatically reduce corporate income tax rates. Countries who have followed this trend include many important trading partners and serve as a control group for testing the effect of lower marginal rates on corporations’ choice of location for domicile and “parking” of their assets. The very fact that many corporations are using the lower tax regimes in parts of Western Europe as integral components of their general tax avoidance strategies necessarily proves that, at the very least, lower marginal taxes attract financial assets to a country.