Manufacturers have led the charge in recent years to lower corporate tax rates and many others have joined us in pointing out that the U.S. has the second highest corporate tax rate among developed countries.
Well, that could change soon. Japan—the only county that bests us in the corporate tax rate department—is thinking of joining a worldwide trend and lowering the country’s corporate tax rate. In fact, the Japanese government sees a lower corporate tax rate as key to the country’s industrial competitiveness.
So where would that leave us? Out in front with a uncompetitive worldwide tax system and the highest tax rates in the world—and not a place where you’d want to headquarter your company, perform the bulk of your R&D and use as a manufacturing platform.