The US is #1: Highest Corporate Tax Rate in the OECD

  • Posted by a hidden member.
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    Dec 15, 2010 8:38 PM GMT
    KPMG Survey results here:
    http://www.kpmg.com/LU/en/IssuesAndInsights/Articlespublications/Pages/KPMG'sCorporateandIndirectTaxRateSurvey2010.aspx

    Analysis Here: http://www.cato-at-liberty.org/u-s-corporate-tax-rate-the-highest/

    [Note: statutory and actual effective are obviously different but they are different in other countries as well and at the very least the greater the separation between these two, is an indication of the complexity of the tax code and the numerous credits that must be claimed - complexity which is of course, in itself effectively a tax on corporate resources]

    U.S. Corporate Tax Rate the Highest
    Posted by Chris Edwards

    Japan has announced that it will cut its corporate tax rate by five percentage points. Japan and the United States had been the global laggards on corporate tax reform, so this leaves America with the highest corporate rate among the 34 wealthy nations of the Organization for Economic Cooperation and Development.

    That is not a good position for us to be in. Most of the competition faced by U.S. businesses comes from businesses headquartered in other OECD countries. America also competes with other OECD nations as a location for investment. Our high corporate tax rate scares away investment in new factories, makes it difficult for U.S. companies to compete in foreign markets, and provides strong incentives for corporations to avoid and evade taxes.

    The chart shows KPMG data on statutory corporate tax rates in the OECD for 2010, but I’ve also put in the new lower rate for Japan. With the Japanese reform, the average rate in the OECD will be 25.6 percent. That means that the 40 percent U.S. rate is 56 percent higher than the wealthy-nation average.

    Most fiscal experts agree that cutting the U.S. corporate tax rate is a high priority, and President Obama’s fiscal commission endorsed the idea. If the president wants to get the economy firing on all cylinders–and generate a new pragmatic and centrist image for himself–he should lead the charge to drop the corporate rate to at least 20 percent.

    With state-level taxes on top, a federal corporate rate of 20 percent would put America at about the OECD average, and give all those corporations sitting on piles of cash a great reason to start investing again.
  • conservativej...

    Posts: 2465

    Dec 15, 2010 9:13 PM GMT
    It's called "social engineering" through the tax code via IRS regulations. icon_biggrin.gif

    I sat in a three hour meeting this AM with tax attorneys discussing the filings we must complete for fiscal 2010. It's f__king mess. There are a whole new range of forms and filings that must be filed for 2010 corporate taxes. No wonder we have moved offshore what could be legally moved offshore. Thank God I hold citizenship in another country, where businesses can be operated outside U.S. jurisdiction.
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    Dec 15, 2010 9:40 PM GMT
    Oh yah !! those poor poor corporations with 35% tax and up to $45 or 50 % deductions off of their taxes. LOL !!! Causing such terrible taxes that one of the mojor oil Company's (I believe it was Mobile) paid no taxes and got a $160,000,000 refund, GE paid no taxes, and CitiBank paid none either. 35 % is on "TAXABLE INCOME" not a bad deal when they buy the votes for so many deductions, exemptions and you name it that they don't pay anywhere near that. Oh how fun it is to watch the Corps pay for the adds that get their men voted in so they'll keep them making more and ever more profits, such that a few oil Company'y if you remember a few years ago made record profits such as Exxon with 41 billion, and no they didn't pay 35% tax
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    Dec 15, 2010 9:48 PM GMT
    conservativejock saidIt's called "social engineering" through the tax code via IRS regulations. icon_biggrin.gif

    I sat in a three hour meeting this AM with tax attorneys discussing the filings we must complete for fiscal 2010. It's f__king mess. There are a whole new range of forms and filings that must be filed for 2010 corporate taxes. No wonder we have moved offshore what could be legally moved offshore. Thank God I hold citizenship in another country, where businesses can be operated outside U.S. jurisdiction.


    Thank God, you're anti-American and hate the country that provided your (parents') wealth so you could inherit it and live off their teets.
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    Dec 15, 2010 9:53 PM GMT
    realifedad said Oh yah !! those poor poor corporations with 35% tax and up to $45 or 50 % deductions off of their taxes. LOL !!! Causing such terrible taxes that one of the mojor oil Company's (I believe it was Mobile) paid no taxes and got a $160,000,000 refund, GE paid no taxes, and CitiBank paid none either. 35 % is on "TAXABLE INCOME" not a bad deal when they buy the votes for so many deductions, exemptions and you name it that they don't pay anywhere near that. Oh how fun it is to watch the Corps pay for the adds that get their men voted in so they'll keep them making more and ever more profits, such that a few oil Company'y if you remember a few years ago made record profits such as Exxon with 41 billion, and not they didn't pay 35% tax


    None of them pay taxes and in our perpetual race to the bottom, they move from city to city saying they'll create jobs if only the city gives them incentives (bribes) and tax credits (cash bribes).

    Exxon and Citigroup Pay No Tax

    http://www.allvoices.com/contributed-news/5551496-corporations-like-ge-and-exxon-pay-no-taxes

    Corporations Paid No Taxes During Book

    http://moneycentral.msn.com/content/Taxes/P80242.asp

    What Top US Companies Pay in Taxes

    http://www.forbes.com/2010/04/01/ge-exxon-walmart-business-washington-corporate-taxes.html