Skip to comments.America Is #1…In Corporate Taxes
Posted on 04/02/2012 10:18:29 AM PDT by Hojczyk
America is used to leading the world but not like this: As of April 1, the U.S. has the dubious distinction of being the developed economy with the highest corporate tax rates.
On Sunday, corporate taxes in Japan dropped to 38%, making America's 39.2% rate the world's highest and well above the average of 25.4% for developed nations, according to the Organization for Economic Cooperation and Development.
Amid the broader issue of reforming the tax code, corporate tax rates have already been a hot-button issue on the campaign trail: President Obama has proposed lowering the top rate to 28% while Mitt Romney's plan would drop it to 25%. Anti-tax crusader Grover Norquist says dropping corporate rates to 25% is just "the first bite at the apple." (See: 'Debacle': Grover Norquist's Case Against President Obama)
America's new standing as the world's top corporate tax regime is adding further fuel to the partisan fire.
"This isn't an April Fool's Day joke," Senate Finance Committee chairman Orrin Hatch (R-Utah) said in a statement. "Every industrialized country around the globe understands that tax rates can determine whether or not businesses succeed or fail. If we are serious about stopping so-called outsourcing, we absolutely must start overhauling our tax system that is a drain on economic growth and efficiency."
The tax rates in question include all federal, regional and local taxes. What's often lost in the discussion, and much of the political rhetoric, is a very critical reality: The effective tax rates most U.S. corporations pay is far lower than 39.2%.
(Excerpt) Read more at finance.yahoo.com ...
We’re #1! We’re #1! We’re #1!
Obama’s form of American Exceptionalism.
Yea us! We are so cool! George Washington would love where we have gotten to. Yeeeeeha! I am so excited!
“The effective tax rates most U.S. corporations pay is far lower than 39.2%.”
Fed. Corp Tax = 35% + Pennsylvania Corp NI Tax 9.9% = 44.9% Rate... No wonder businesses are leaving PA
This does not include Capital Stock Taxes, Loans Taxes and many other taxes.
And then, double tax these profits by taxing the dividends paid to the individuals from the profits at the individual rates on top of the corp. taxes