U.S. Still Lagging Behind OECD Corporate Tax Trends
Source: Tax Foundation
From press release:

The U.S. has the second-highest corporate tax rate in the OECD and is one of only two countries that have not reduced their rates since 1994, according to a new review of international tax rates by the Tax Foundation.

Five countries cut their corporate income tax rates in 2006, seven more will have cut their rates by the end of this year, and Germany recently announced a planned cut on January 1, 2008.

Despite its high corporate tax rate, the U.S. collects less revenue as a percentage of GDP than most other OECD countries, even those with much lower statutory tax rates,” said Chris Atkins, senior tax counsel and co-author of the new study. “The United States is one of only two OECD countries not to cut corporate tax rates in the past 12 years. That has pushed us further and further behind in a highly competitive international marketplace.”

U.S. lawmakers should consider enacting a substantially lower federal corporate income tax rate, according to Atkins. Taking into account state-level corporate income tax rates (which don’t exist in most other nations), the cut would have to be at least 10 percentage points to get the U.S. rate down to the OECD average.

This entry was posted on Wednesday, July 25th, 2007 at 8:57 pm and is filed under Business and economics, Government and politics, International, Taxation. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.