Study: U.S. #32 When It Comes To Tax Burden

That’s out of 34 nations, to be clear

(Wall Street Journal) On Monday the Tax Foundation, which manages the widely followed State Business Tax Climate Index, will launch a new global benchmark, the International Tax Competitiveness Index. According to the foundation, the new index measures “the extent to which a country’s tax system adheres to two important principles of tax policy: competitiveness and neutrality.”

A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high “drive investment elsewhere, leading to slower economic growth,” as the Tax Foundation puts it.

By neutrality the foundation means “a tax code that seeks to raise the most revenue with the fewest economic distortions. This means that it doesn’t favor consumption over saving, as happens with capital gains and dividends taxes, estate taxes, and high progressive income taxes. This also means no targeted tax breaks for businesses for specific business activities.” Crony capitalism that rewards the likes of green energy with lower tax bills while imposing higher bills on other firms is political arbitrage that misallocates capital and reduces economic growth.

The index takes into account more than 40 tax policy variables. And the inaugural ranking puts the U.S. at 32nd out of 34 industrialized countries in the Organization for Economic Co-operation and Development (OECD).

First you have high tax rates, so often used to punish and reward, then throw in missallocation of tax dollars to essentially reward campaign donors. Then you throw in a far left President and his political party which constantly talk about raising taxes and punishing companies and “the rich”, and it’s no wonder companies have been performing tax inversions more and more, as well as more and more people renouncing their US citizenship.

With the developed world’s highest corporate tax rate at over 39% including state levies, plus a rare demand that money earned overseas should be taxed as if it were earned domestically, the U.S. is almost in a class by itself. It ranks just behind Spain and Italy, of all economic humiliations. America did beat Portugal and France, which is currently run by an avowed socialist.

Only Saudi Arabia (55%) and Chad (40%) have higher marginal corporate tax rates. The world wide average is 22.6%, with a weighted average of 30.6%.

Crossed at Right Wing News.

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7 Responses to “Study: U.S. #32 When It Comes To Tax Burden”

  1. Jeffery says:

    Bummer. Please read below to learn the truth:

    Our statutory corporate tax rate is high, our effective tax rate (what is actually paid) is low and has been falling steadily for decades. The proportion of federal revenues from corporate taxes has been falling steadily.

    This is a push by the Tax Foundation to further cut corporate taxes to further enrich the already rich. What’s new.

  2. Do you take advantage of everything in the tax code to pay as little as possible? Then you are just another dirty filthy greedy corporate hack.

    The net tax rates have been falling in other countries, too, Jeffy. Most do not nail corps for their out of country business.

    Furthermore, the article is about more than just one thing. I suspect you didn’t bother to read it, just went with the typical far left knee-jerk reaction.

  3. david7134 says:

    I looked over your little article and found that it was a bit far fetched. In fact, I would say that after looking at the site, it is representative of a communistic view of capitalism. Much of the “information” in the article is distorted, much like you climate arguments.

    Now, you own at least one corporation. You are participating in income protection and corporate loopholes. You state that you have lots of money, but you don’t give it all to the government, why? I would bet that you even attempt to make a profit!!!
    This is typical of liberals, they want everyone else to be held back. Whether it is stopping blacks from being independent and self sufficient to making sure that medical care is degraded and expensive for those not lucky enough to make a fortune.

    If taxes are so important and seem in some manner to help the economy, then why does New York advertise programs for small business that eliminates their taxes for 10 years? Or how about the fact that Louisiana has taken over from Hollywood by markedly reducing the taxes on the film industry? The fact is that there is no reason at all for corporations paying taxes. And for that matter, individuals are being forced to pay excessive personal taxes that are stifling our economic recovery, in fact, putting us into a depression.

    Lets get the government out of our lives, reduce or eliminate government programs that dispense harmful regulations. Allow people to buy drugs that they feel are necessary as other countries do and get rid of the DEA and other agencies that force us to go to a doctor to have permission to buy what we need.

  4. Jeffery says:

    Teachy and dave,

    I find it interesting and instructive that you both attack me personally rather than discuss the truth around corporate taxation in the US.

    And Teachy. I wasn’t criticizing corporations for reducing their taxes, I was merely pointing out that our corporate tax rate is not nearly as burdensome as the Tax Foundation claims. Even worse, the Tax Foundation knows they are misleading people.

    The Tax Foundation and the wealthy folks to whom they cater, are pushing to reduce the corporate tax rate even more. If your objective is to decrease taxes on the wealthy, of course you would lie about how much they pay.

  5. Jeff, you constantly make it personal, so man up, buttercup.

  6. jl says:

    J-“further cut corporate taxes to enrich the already rich”. Gee, I didn’t know that all corporations are “rich”. Love to see that data, and further, what is “rich”? “The portion of federal revenues from corporate taxes has been falling steadily.” That that doesn’t necessarily mean what you think it means. The total dollar amount of corporate taxes taken in could, let’s say, be at an all time high, while at the same time the portion, or per-cent-of, corporate taxes would be lower. There could be several reasons, probably first would be that the portion of federal taxes paid by individuals could be going up, which would lower the corporate portion. Of course it’s the dollars taken in, not the “portion” that counts.

  7. Jeffery says:

    Teachy typed: “,,, so man up, buttercup.”

    This from the frightened cheerleader begging real men and women to go kill those mean ISIS men. Yes, buttercup, a young brave American woman will die because those mean ISIS men scare you.

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