It Costs More to Manufacture in the United States and Taxes Are a Big Part of the Problem

By February 9, 2012Taxation

Despite what many would like you to think, U.S. companies shoulder a larger tax burden than their counterparts overseas.  There’s a lot of focus in Washington on the statutory federal corporate tax rate, which , at 35 percent, will be the highest among industrialized countries as of April 1, but that’s only part of the equation. 

When you factor in business deductions and credits, the average 28 percent “effective tax rate” paid by U.S. corporations also is higher than the rate paid by their foreign counterparts. 

In their latest video, the folks at the Tax Foundation do great job of debunking claims about the corporate tax burden and showing how U.S. companies tax bills stack up on a global basis. 

The short clip reinforces the Manufacturing Institute’s report  on the structural cost of manufacturing in the United States —it costs more to manufacture in the United States and taxes are a big part of the problem.

Dorothy Coleman

Dorothy Coleman

Dorothy Coleman is vice president of tax and domestic economic policy at the National Association of Manufacturers (NAM). Ms. Coleman is responsible for providing NAM members with important information related to tax issues and representing the NAM’s position to Congress, the Administration and the media. An NAM spokesperson for tax policy issues, she coordinates membership coalitions; prepares testimony, reports and analyses; and responds to media inquiries. Before taking over as vice president of the tax policy department, she served as director of tax policy from April 1998 to April 2000.
Dorothy Coleman

Leave a Reply