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National Debt

We’re #1...for the Highest Corporate Tax Ratein the World

  • April 04, 2012

    Its no “April Fools,” onApril 1st the United States officially became home to the highestcorporate tax rate in the world. This comes as Japan officially cut itscorporate tax rate to 36.8 percent, leaving ours in the lead at 39.2 percent.Countries with more restrictive economies like Russia and China have rates of20 percent and 25 percent, respectively; essentially leaving our businesses ata competitive disadvantage.

     

    Organizations such as theBusiness Roundtable have been pushing for reforms to the corporate tax rate. Bycutting the rate we would spur job growth and industrial reinvestment withfunds that would otherwise be finding their way to the government’s coffers.Recently, England has cut their tax rates from 28 percent to 22 percent, which hasbeen called “an advertisement for investment and jobs in Britain.” This is not anisolated move, with most country’s rates steadily declining over the past 20years. Meanwhile, the United States has had a relatively stagnant rate. Taxfoundation.comnotes that since 2006, there have been 133 major corporatetax rate cuts around the world.

     

    This is a fact which hasn’tbeen lost on leaders of both political parties. President Obama has proposed loweringthe rate to 28 percent, but while adding in $350 billion in new taxes. Republicans,including likely presidential nominee Mitt Romney, are pushing for a cut to 25percent without additional taxes. A middle ground may be a closing of many ofthe loopholes in our arcane tax structure and a significant rate cut. Withunemployment still soaring and millions of Americans out of work, additionalfunds in the hands of the private sector would be helpful to spur a trueeconomic recovery. With the election season heating up, this may be one areawhere our elected leaders can come together and find a positive solution.

     

    Top 10 Countries by Tax Rate:

     

    ·   United States - 39.2 percent

    ·   Japan - 38.01

    ·   France - 34.4

    ·   Belgium - 34

    ·   Germany - 30.2

    ·   Mexico - 30

    ·   Spain - 30

    ·   Australia - 30

    ·   Luxembourg - 28.8

    ·   Norway - 28

    ·   New Zealand -28


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