Natixis' Joseph Lavorgna said "the US.......>

US VIEW: Natixis' Joseph Lavorgna said "the US corporate tax rate is poised to

be cut from 35% to 21% beginning next year. This will place it just below the

average worldwide top marginal rate of just under 23%."

- He adds "the last time the US corporate rate was reduced was in 1987,

following the passage of The Tax Reform Act of 1986. What effects will this have

on investment spending and corporate tax revenues?"

- He said that "we find that the investment share of output was actually higher

when corporate taxes were higher. From 1960-1986, the rate averaged 48%, and the

investment share averaged 13.3%. From 1987 to present, the rate has averaged

about 35%, and investment averaged 12.7%. There is little correlation between

the tax rate and the share of business investment in the economy."