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.