The Magic Recipe and Its Fine Print

Read our Managing Director Christian F. Jiménez's take on the corporate tax cut and the conditions that truly drive investment, published in Ex-Ante.

In this column, Christian Jiménez argues that the key question is not how much the corporate tax rate should be cut, but how to build a genuine habitat for investment. He cautions that a rate reduction paired with increases in other taxes or complex regulations may ultimately have a net-zero effect — and that investment will not materialize regardless if social instability or high financing costs stand in the way. Drawing on Bold Economics’ research — which estimates roughly USD 750 million in new investment and nearly USD 800 million in additional GDP for each percentage-point reduction — he reminds readers that those figures are a “laboratory snapshot”: models are guides, not oracles. His conclusion: capital seeks predictability and coherence, and the real task is not merely signing a law into effect, but building that foundation of trust.