Corporate Tax Rates Being Cut Worldwide, Except Here

By August 13, 2008Economy, Taxation

The global competitive environment keeps getting tougher. Nine key trading partners cut their rates in 2007.

From the Tax Foundation’s Tax Policy Blog:

New Study: U.S. Corporate Tax Rate 50% Higher than Economic Competitors

Tax Foundation President Scott Hodge this morning released the latest Tax Foundation Fiscal Fact in response to a new study from the Organisation for Economic Co-Operation and Development (OECD). The OECD study shows that for the 17th consecutive year, the average rate of corporate taxes in non-U.S. countries fell while the U.S. corporate tax rate stayed the same.

As a result of the U.S. failure to lower its corporate tax rate for more than two decades while other major trading nations lowered theirs, the U.S. corporate tax rate is now 50% higher than the OECD average. Nine key trading partners cut their rates during 2007.

Said Hodge:

Continued failure by U.S. tax policymakers to keep up with our top global economic competitors means that we’re solidifying a trend that will result in our children and grandchildren not seeing the economic growth we’ve seen in our lifetimes. There’s a real-wallet impact for Americans as we continue to sit idly by while other countries improve the way they do business, and we should be very concerned about jobs, capital, and investments moving from high-tax countries to low-tax countries.

Click here for the Tax Foundation Fiscal Fact. Click here for the press release.

Join the discussion 2 Comments

  • […] Wall Street Journal opinion page recognizes the implications of the Tax Foundation’s latest report on corporate tax rates around the world. From “America the […]

  • karl says:

    Maybe you missed it but:

    Wednesday, the Government Accountability Office (GAO) released a study on taxes paid by corporations. In what Sen. Byron L. Dorgan, D-N.D., mildly called “a shocking indictment of the current tax system,” the GAO found that about two-thirds of corporations operating in the United States did not pay taxes annually from 1998 to 2005.

    Stop whining (as Phil Gramm would say). Nobody in corporate America is paying the taxes you keep complaining about.

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