Last year, I expressed skepticism that the White House was serious about reducing the corporate tax rate. And, sure enough, when the Obama Administration produced a plan earlier this year, it was a disappointing mix of a few good provisions and several unpalatable proposals.
This is unfortunate because the United States has one of the most punitive corporate tax systems in the developed world. Indeed, every singe European welfare state has a lower corporate tax rate than America – even leftists nations such as France and Sweden!
For a long time, only Japan imposed a more onerous tax rate than the United States. But even that now has changed. After toying with the idea since 2010, the Japanese government finally pulled the trigger and reduced the nation’s tax rate.
Here’s a brief blurb from Reuters.
The United States will hold the dubious distinction starting on Sunday of having the developed world’s highest corporate tax rate after Japan’s drops to 38.01 percent… Japan’s reduction , prompted by years of pressure from Japanese politicians hoping to spur economic growth, will give that country the world’s second-highest rate. …The average 2012 corporate tax rate for the 34 developed countries is 25.4 percent, according to the Organization for Economic Co-operation and Development.
That leaves America in the unenviable position of having the developed world’s highest corporate tax rate, somewhere between 39 percent-40 percent. This video explains why this isn’t a good idea.
It was my very first video, so it’s not a polished product, but the information is right on the mark.
The moral of the story is very straightforward. A high corporate tax rate is a self-imposed wound to American competitiveness. But that’s only part of the story. America also has a “worldwide” tax system, which forces U.S. companies to suffer a big disadvantage when trying to compete for market share in other nations.
No wonder even officials from the Clinton Administration have begun to argue that the corporate tax rate should be significantly lowered.
[…] This is an area where the United States traditionally has lagged, both because we used to have one of the world’s highest corporate tax rates and because onerous tax rules put U.S.-based companies at an added […]
[…] This is an area where the United States traditionally has lagged, both because we used to have one of the world’s highest corporate tax rates and because onerous tax rules put U.S.-based companies at an added […]
[…] If you want more information, here’s my primer on corporate taxation. You can also watch this video. […]
[…] Here are two indices that deserve special attention. As you can see the United States gets a poor score for wasteful spending and a terrible score for the punitive taxation of profits. […]
[…] A corporate tax rate of 17 percent (less than half the U.S. level). […]
[…] takes office), but it was enormously important for American competitiveness since the United States used to have the highest corporate tax rate in the developed […]
[…] from Japan isn’t that good. Yes, the government did slight lower its corporate tax rate so it no longer has the highest burden among developed nations. But having the second-highest corporate tax rate is hardly something to […]
[…] looking at a second set of numbers, the President is spot on. The United States unambiguously has the highest corporate tax rate among developed nations. And the U.S. may even have the highest corporate rate in the entire world depending on how certain […]
[…] let’s not forget that it’s even easier for investment to cross borders, which is why high corporate tax rates and high levels of double taxation are so damaging to U.S. workers and American […]
[…] the incentive to shift job overseas is caused by America’s high corporate tax rate. That’s what makes it attractive for firms to operate in other […]
[…] since the United States is falling behind the rest of the world. America now has the highest corporate tax rate in the developed world and arguably may have the highest rate in the entire […]
[…] reducing the 35 percent federal tax on corporate income usually revolve around the fact that having the developed world’s highest tax rate on business undermines competitiveness and reduces investment in […]
[…] reducing the 35 percent federal tax on corporate income usually revolve around the fact that having the developed world’s highest tax rate on business undermines competitiveness and reduces investment in […]
[…] A corporate tax rate of 17 percent (less than half the U.S. level). […]
[…] Should the rate be lowered because it’s embarrassing that America has the highest corporate tax rate in the developed world, and perhaps the entire world? That’s certainly a persuasive reason […]
[…] And to the extent that there is a disadvantage, it’s not because of some sneaky maneuver by foreign governments. It’s because of a self-inflicted wound. […]
[…] And for those who question whether lowering the corporate tax rate is important, here’s an argument-ending chart from a recent Tax Foundation publication. Keep in mind that the U.S. corporate rate (including state levies) is 39 percent. […]
[…] bottom line is that the U.S. corporate tax rate is far too high. And when you combine that punitive rate with a distortionary preference for debt over equity, the […]
[…] the stage is set for a big reduction in America’s anti-competitive corporate tax rate, which is the highest in the developed world (if not the entire world) and creates big disadvantages for American workers and […]
[…] the stage is set for a big reduction in America’s anti-competitive corporate tax rate, which is the highest in the developed world (if not the entire world) and creates big disadvantages for American workers and […]
[…] stage is set for a big reduction in America’s anti-competitive corporate tax rate, which is the highest in the developed world (if not the entire world) and creates big disadvantages for American workers and […]
[…] Lower corporate tax rate – Trump didn’t specifically reference the 15-percent rate he mentioned in the campaign, but he aggressively argued for a big drop in America’s punitive corporate tax rate. […]
[…] First, the tax rate on business would drop from 35 percent to 20 percent. This is unambiguously positive. […]
[…] First, the tax rate on business would drop from 35 percent to 20 percent. This is unambiguously positive. […]
[…] is why I hope American policy makers pay attention to this research. We already have the highest corporate tax rate in the developed world (arguably the entire world depending on how some severance taxes in poor […]
[…] is why I hope American policy makers pay attention to this research. We already have the highest corporate tax rate in the developed world (arguably the entire world depending on how some severance taxes in poor […]
[…] If you want more information, here’s my primer on corporate taxation. You can also watch this video. […]
[…] If you want more information, here’s my primer on corporate taxation. You can also watch this video. […]
[…] If you want more information, here’s my primer on corporate taxation. You can also watch this video. […]
[…] Here are two indices that deserve special attention. As you can see the United States gets a poor score for wasteful spending and a terrible score for the punitive taxation of profits. […]
[…] dealing with the degree to which new investment is taxed) would do the most damage, followed by a higher corporate tax rate, and then higher individual income tax […]
[…] if this is a sign of bias or ignorance on the part of CNBC, but the U.S. unquestionably has the highest corporate tax rate among developed […]
[…] if this is a sign of bias or ignorance on the part of CNBC, but the U.S. unquestionably has the highest corporate tax rate among developed […]
[…] if this is a sign of bias or ignorance on the part of CNBC, but the U.S. unquestionably has the highest corporate tax rate among developed […]
[…] and making America a much more attractive place to do business. Instead of having the highest corporate rate among developed nations, the U.S. rate would rival Ireland’s 12.5% […]
[…] to argue with that plank, though it raises the question of why Republicans haven’t enacted this change […]
[…] Sam this year is estimated to be $329 billion. So companies have a double-whammy of enduring the developed world’s highest corporate tax rate, and they have to spend lots of money for the pleasure of that punitive […]
[…] – America’s corporate tax system arguably is the worst in the developed world, with a very high rate and onerous rules that make it difficult to compete in world markets. A 20 percent rate is a […]
[…] United States has the highest corporate tax rate in the industrialized world, combined with having the most onerous “worldwide” tax system among […]
[…] United States has the highest corporate tax rate in the industrialized world, combined with having the most onerous “worldwide” tax system among […]
[…] United States has the highest corporate tax rate in the industrialized world, combined with having the most onerous “worldwide” tax […]
[…] rate is too high, making America less […]
[…] acknowledgement that the U.S. corporate tax regime drives inversions because of high rates and worldwide […]
[…] acknowledgement that the U.S. corporate tax regime drives inversions because of high rates and worldwide […]
[…] with the top rate falling to 31 percent. And the best part of the plan may be that it reduces America’s uncompetitive corporate tax rate to 15 […]
[…] same ones any sensible person would identify. First, America’s corporate tax rate is absurdly […]
[…] same ones any sensible person would identify. First, America’s corporate tax rate is absurdly […]
[…] same ones any sensible person would identify. First, America’s corporate tax rate is absurdly […]
[…] good, dramatically lowering income tax rates, significantly curtailing double taxation, and also abolishing the corporate income tax. But I don’t like that they both propose a VAT to help make up the difference. It’s not […]
[…] They all lower or eliminate the corporate income tax. […]
[…] They all lower or eliminate the corporate income tax. […]
[…] the United States has the world’s highest corporate tax rate, which undermines job creation and competitiveness in America, regardless of whether there are […]
[…] any event, here’s a video that Senator Warren should watch if she actually wants to understand corporate taxation (though I […]
[…] any event, here’s a video that Senator Warren should watch if she actually wants to understand corporate taxation (though I […]
[…] to shift money out of the United States because politicians have saddled our economy with the world’s highest corporate tax rate, combined with the globe’s most punitive worldwide tax […]
[…] noting that the only reason this kind of dispute even exists is because the United States has the highest corporate tax rate in the entire world. So companies naturally seek to maximize the income they earn in other nations (sort of like […]
[…] noting that the only reason this kind of dispute even exists is because the United States has the highest corporate tax rate in the entire world. So companies naturally seek to maximize the income they earn in other nations (sort of like […]
[…] tax burdens, such as somewhat lower statutory tax rates on households and a big reduction in the very high tax rate imposed on companies, as well as a slight reduction in the double tax on capital […]
[…] lower corporate tax rate, particularly combined with territorial taxation and “expensing” of investment expenditures, […]
[…] lower corporate tax rate, particularly combined with territorial taxation and “expensing” of investment expenditures, […]
[…] lower corporate tax rate, particularly combined with territorial taxation and “expensing” of investment […]
[…] may be wondering why this passage is worrisome. After all, it’s great news that the very high corporate tax rate is being replaced by a low-rate system. Replacing depreciation with expensing also is a huge step […]
[…] may be wondering why this passage is worrisome. After all, it’s great news that the very high corporate tax rate is being replaced by a low-rate system. Replacing depreciation with expensing also is a huge step […]
[…] be surprised to learn that bad government policy is at the top of the list. Having the world’s highest corporate tax rate obviously doesn’t […]
[…] is saved and invested. It’s possible, when you consider the impact of the capital gains tax, corporate income tax, double tax on dividends, and the death tax, for a single dollar of income to be taxed as many as […]
[…] about “economic patriotism.” If that simply meant, for instance, that they wanted a lower corporate tax rate to make American companies and workers more competitive, that would be […]
[…] the fact that corporate tax receipts are lagging is a sign that tax rates are too high rather than too low. In other words, there’s a Laffer Curve effect, and there’s lots of […]
[…] the self-inflicted wound of worldwide taxation, particularly when combined with the world’s highest corporate tax rate, it’s easy to understand why some companies engage in “inversions” and become […]
[…] the self-inflicted wound of worldwide taxation, particularly when combined with the world’s highest corporate tax rate, it’s easy to understand why some companies engage in “inversions” and become […]
[…] claim, but is there any other explanation for why they reject the types of tax policies (such as lower corporate rates, reduced double taxation, and expensing) that will increase investment, thus boosting productivity […]
[…] claim, but is there any other explanation for why they reject the types of tax policies (such as lower corporate rates, reduced double taxation, and expensing) that will increase investment, thus boosting productivity […]
[…] more competitive, yet he wants to extract more money from the U.S. business sector even though we already have the world’s highest corporate tax rate. He also wants to boost the capital gains tax rate, which will be bad news for job-creating […]
[…] more competitive, yet he wants to extract more money from the U.S. business sector even though we already have the world’s highest corporate tax rate. He also wants to boost the capital gains tax rate, which will be bad news for job-creating […]
[…] don’t forget that the United States compounds the damage with the world’s highest corporate tax rate, pervasive double taxation of dividends, and a punitive death […]
[…] don’t forget that the United States compounds the damage with the world’s highest corporate tax rate, pervasive double taxation of dividends, and a punitive death […]
[…] happens (and always with IRS approval), it is because the American corporate tax rate is now the highest in the developed world (and the second highest in the entire world), so companies naturally would prefer to reduce their […]
[…] a look at this impressive graphic. We’re #1 in some bad ways, but it seems we’re also #1 in a very good […]
[…] a look at this impressive graphic. We’re #1 in some bad ways, but it seems we’re also #1 in a very good […]
[…] The budget also foresees tax reform, including lower tax rates for households, a 25 percent corporate tax rate, and a move toward territorial […]
[…] step in the right direction. The corporate tax rate falls from 35 percent to 25 percent, which is more praiseworthy, though Camp doesn’t explain why small businesses (who file using the individual income tax) […]
[…] d’imposition sur les sociétés n’a pas changé depuis des décennies, par exemple, mais les États-Unis sont néanmoins désormais de plus en plus à la traine du reste du monde parce que d’autres nations ont réduit leurs taux. Un article du Telegraph britannique nous […]
[…] d’imposition sur les sociétés n’a pas changé depuis des décennies, par exemple, mais les États-Unis sont néanmoins désormais de plus en plus à la traine du reste du monde parce que d’autres nations ont réduit leurs taux. Un article du Telegraph britannique nous […]
[…] l’impôt sur les sociétés aux Etats-Unis n’a pas été modifié depuis des décennies, mais les Etats-Unis ont chuté plus bas et toujours plus bas derrière le reste du monde, car d’autres nations ont allégé leur fiscalité sur les […]
[…] corporate tax rate in the United States hasn’t been changed in decades, for instance, but the United States has fallen further and further behind the rest of the world because other nations have lowered their […]
[…] corporate tax rate in the United States hasn’t been changed in decades, for instance, but the United States has fallen further and further behind the rest of the world because other nations have lowered their […]
[…] corporate tax rate in the United States hasn’t been changed in decades, for instance, but the United States has fallen further and further behind the rest of the world because other nations have lowered their […]
[…] corporate tax rate in the United States hasn’t been changed in decades, for instance, but the United States has fallen further and further behind the rest of the world because other nations have lowered their […]
[…] since the United States imposes the highest corporate income tax in the developed world and also ranks a dismal 94 out of 100 on a broader measure of corporate tax competitiveness, this […]
[…] and there’s no question that should be a priority since the United States now has the least competitive corporate tax system in the developed world (and we rank a lowly 94 out of the world’s top 100 […]
[…] with the top rate falling to 31 percent. And the best part of the plan may be that it reduces America’s uncompetitive corporate tax rate to 15 […]
[…] down,” though you could say that’s the understatement of the year. The United States has the highest corporate tax rate among the 30-plus nations in the industrialized world. And we rank even worse – 94th out of 100 countries according to a couple of German economists – […]
[…] though you could say that’s the understatement of the year. The United States has the highest corporate tax rate among the 30-plus nations in the industrialized world. And we rank even worse – 94th out of 100 countries according to a couple of German economists […]
[…] this is a good description of many parts of our tax system. We also have the world’s highest corporate tax rate and we also have very high tax burdens on dividends and capital gains (and the tax rates on both […]
[…] may understand that the corporate tax burden is very high and they may understand that American companies sometimes aren’t very competitive, but can […]
[…] definitely have the highest corporate tax rate in the developed world, and we may have the highest corporate tax rate in the entire world depending on how one chooses to […]
[…] this is a good description of many parts of our tax system. We also have the world’s highest corporate tax rate and we also have very high tax burdens on dividends and capital gains (and the tax rates on both […]
[…] all, America has the highest corporate tax rate in the developed world and is ranked 94 out of 100 on other measures of business […]
[…] is very welcome news. The United States has the highest corporate tax rate in the developed world and the overall tax system for companies ranks a lowly 94 out of 100 nations in a survey of “tax […]
[…] that the United States has the highest statutory tax rate for companies in the industrialized world and ranks only 94 out of 100 nations for business “tax attractiveness,” I obviously […]
[…] J. Mitchell 7-12-13 I’ve relentlessly complained that the United States has the highest corporate tax rate among all developed […]
[…] relentlessly complained that the United States has the highest corporate tax rate among all developed nations. And if you look at all the world’s countries, our status is still […]
[…] relentlessly complained that the United States has the highest corporate tax rate among all developed […]
[…] relentlessly complained that the United States has the highest corporate tax rate among all developed […]
[…] relentlessly complained that the United States has the highest corporate tax rate among all developed […]
[…] happens (and always with IRS approval), it is because the American corporate tax rate is now the highest in the developed world (and the second highest in the entire world), so companies naturally would prefer to reduce their […]
[…] happens (and always with IRS approval), it is because the American corporate tax rate is now the highest in the developed world (and the second highest in the entire world), so companies naturally would prefer to reduce their […]
[…] made the point before that the United States foolishly imposes the highest corporate tax rate of all developed […]
[…] J. Mitchell 5-1-13 I’ve made the point before that the United States foolishly imposes the highest corporate tax rate of all developed […]
[…] made the point before that the United States foolishly imposes the highest corporate tax rate of all developed […]
[…] It also would be a good idea for the United States. […]
[…] tax rates have dropped from an average of more than 67 percent in 1980 to about 42 percent today. Corporate tax rates also have plummeted, falling from an average of 48 percent to 24 percent. …Lawmakers also were pressured to lower […]
[…] Proposals to lower America’s destructively high corporate tax rate are needed, but I don’t want politicians “paying for” the change with other […]
[…] Indeed, the only time I even referenced April Fool’s Day came on the following day, when I stated that America’s high corporate tax rate meant that every day was April Fool’s Day for American companies. […]
[…] the United States is a high-tax nation for corporations, why should Americans […]
[…] I am downright stunned to learn that America’s high corporate tax rate is such an outlier that companies are even moving to welfare states such as the United […]
[…] It also would be a good idea for the United States. […]
[…] marginal tax rate is what determines incentives for new investment and job creation, which is why America’s highest-in-the-world 35 percent corporate tax rate is a major problem even if average tax rates are much […]
[…] Now let’s shift to the tax side of the fiscal equation. We know that Japan has some of the highest tax rates in the industrialized world. Indeed, until last year, Japan was the only nation to have a higher corporate tax rate than the United States. […]
[…] this is a good description of many parts of our tax system. We also have the world’s highest corporate tax rate and we also have very high tax burdens on dividends and capital gains (and the tax rates on both […]
[…] marginal tax rate is what determines incentives for new investment and job creation, which is why America’s highest-in-the-world 35 percent corporate tax rate is a major problem even if average tax rates are much […]
[…] I’m a big fan of lower corporate tax rates. […]
[…] I’m a big fan of lower corporate tax rates. […]
[…] I’m a big fan of lower corporate tax rates. […]
[…] I’m a big fan of lower corporate tax rates. […]
[…] I’m a big fan of lower corporate tax rates. […]
[…] also would be a good idea for the United States. Rate this:Share this:PrintEmailFacebookTwitterMoredeliciousDiggFarkLinkedInRedditStumbleUponLike […]
[…] I am downright stunned to learn that America’s high corporate tax rate is such an outlier that companies are even moving to welfare states such as the United […]
[…] I am downright stunned to learn that America’s high corporate tax rate is such an outlier that companies are even moving to welfare states such as the United […]
[…] marginal tax rate is what determines incentives for new investment and job creation, which is why America’s highest-in-the-world 35 percent corporate tax rate is a major problem even if average tax rates are much […]
[…] Battle of the Bums: Diaper Man vs. Footless Hans « International Liberty. Share this:TwitterFacebookLinkedInStumbleUponEmailPrintLike this:LikeBe the first to like this […]
@0789….
There are many people who live a productive life with past abuses and trauma. They work and they seek help while working… and if you read the last paragraph in the very link you provided, you will see this person is not ‘disabled’…
“Senator Coburn questions the sincerity of the 30-year-old’s benefits since the man dresses appropriately in public, drives himself to errands, builds custom furniture and runs an internet support group.”
http://www.ohiokysocialsecuritydisabilityattorney.com/2011/05/senator-questions-need-of-adult-baby-to-be-on-ssdi.shtml
“According to the 30-year-old’s website, the man worked as a security guard for a year and a half before mental problems and trauma from childhood abuse made it impossible for him to hold a job. He has received disability for the majority of the last ten years.”
If you want to criticize the medical diagnosis or the rules for disability for the mentally ill that is legitimate. But “living like a baby” is not what makes him eligible for benefits.
I think it is pretty hypocritical, pathetic actually, that virtually none of the conservative bloggers on the internet has explained this story clearly. Why should people believe what they read when the authors are as lazy and biased as the mainstream media?
The diaper man is eligible for benefits because of an issue unrelated to the fact that he likes to live like a baby. That is why his benefits were not rescinded after the review. Should his legitimate benefits be cut because he lives a strange life style?
Dependency is destructive, of course.
But there is a huge and hidden cost to ANY welfare program.
Whenever we decide give subsidies, no matter how legitimate, we create an extra “wedge” of wasted benefits.
For example, say we make sure everyone gets at least $20,000 a year. If you make say $18k, your benefit is $2k.
But if next year your income rises to $19k, we can’t just cut your benefit to $1k. That would be like a 100% marginal tax rate. You would never try to raise your income if you lost dollar-for-dollar.
So we always taper off the benefits and tax payers lose the excess.
The few remaining taxpayers need to understand this extra deadweight cost hidden in every new political scheme.
[…] The police added that the man had almost died from loss of blood before the emergency services arrived and that they had recovered the foot from the oven – but that it had been too badly burned to reattach. Citado por Dan Mitchell. […]
[…] the foot from the oven – but that it had been too badly burned to reattach. Citado por Dan Mitchell. Classificar isto: Share this:FacebookTwitterStumbleUponEmailMaisPrintDiggLinkedInGostar […]