Earlier today, the NAM Blogger hit the nail on the head when he took a real time look at corporate tax rates around the world. Aside from Japan–hardly the economic poster child for growth–the United States has the highest corporate tax rates in the industrial world. Moreover, OECD countries have been slashing rates so that the OECD average is about ten points BELOW the United States. In a competitive global marketplace, that’s not a good spot to be in.
In 2003, The Manufacturing Institute and the Manufacturers Alliance/MAPI released its first report on five structural costs–including corporate taxes–that were making U.S. manufacturing less competitive. It showed that US manufacturers bore an additional 22.4 percent in structural costs than our nine major trading partners. That report was hand delivered to Senator Dorgan’s office.
Last year, we updated our report and found that the gap had widened, with US manufacturers now carrying a 31.7 percent higher burden than competitors in Canada, Japan, Germany and other major manufacturing nations. Senator Dorgan’s office received a copy of that report, too, as did all members of Congress.
Next time you hear a politician lament the shifting of jobs and production abroad, remember the lack of interest among some legislators in making U.S. manufacturing stronger by helping companies get a handle on costs. For The Escalating Cost Crisis and its predecessor, click here.
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