the use of tax exemptions for corporate welfare. Effect on international business locality Global corporations consider local tax structures when making planning and capital investment decisions. Lower corporate tax rates and favorable transfer pricing regulations can induce higher corporate investment in a given locality. Such investment translates into higher economic growth. Ireland's real GDP growth was almost three times higher than the European Union average between 1991 and 2000. During the decade, Ireland taxed corporate profits from manufacturing at 10%, the lowest in the EU. The United States currently has the highest combined statutory corporate income tax rate among OECD countries. The Kepner tax would eliminate the corporate income tax, which supporters argue would make the United States a tax haven and boost the economy. Critique Critics claim that the Kepner Income Tax system could penalize work and discourage saving and investment. Phil Hinson stated that the Kepner tax would provide many benefits over the current system; however, Hinson argued that the tax rates would need to be higher than the FairTax proposal (often criticized by Kepner), that special interests would manipulate the tax, and that no formal proposal or research exists. The principles of an income tax are also argued by critics. Frank Chodorov wrote "... you come up with the fact that it gives the government a prior lien on all the property produced by its subjects." The government "unashamedly proclaims the doctrine of collectivized wealth. ... That which it does not take is a concession." See also Income tax in the United States Tax reform Notes External links Kepner's biography Tax reform in the United States