The corporate tax rate has a significant effect on corporate profitability - and profitability is the basis for most investment decisions. Moneys paid to taxes are moneys that are not used for corporate reinvestment or dividends to stockholders.

When dividend rates go down, investors dump stocks which produce less on the investment, the value of that company's stock dips, and the market goes further down and....well, we're there!

Even a 5% per annum cut in the corporate tax rate for the next 3 years would boost dividends paid, and the value of those stocks rise accordingly.

It's really that simple - we just keep looking for ways to make it complicated...