« Pennsylvania City of Altoona Scraps Land Value Tax | Main | Are Too Many People Still Dependent on Government? »

U.S. Business Taxes are Highest in the World

In an editorial two weeks ago, Investors Business Daily (IBD) wrote, "American businesses face the highest tax rate in the world, a new report says. We already knew it faced the biggest regulatory burden. Is it any wonder then that the prospect of lightening the load has led to rising stock prices and more jobs?"

The IBD editorial explained in part:

"The Congressional Budget Office, in a study released last Wednesday, noted that U.S. corporations now face a 39.1% tax rate, the highest statutory corporate tax rate in the wealthy G20 group of nations. The U.S. was in third place, but both Japan and Germany — wising up to the fact that higher taxes hurt economic growth — recently cut their corporate rates, leaving the U.S. atop the tax heap.

"The United States made no change in federal corporate tax rates between 2003 and 2012," said the CBO, "and by 2012, it had the highest top statutory rate in the G20."

"This may be a big reason why American companies now have an estimated $2.4 trillion parked overseas — they don't want to be hit by absurdly confiscatory tax rates when they bring it home."

Read the complete editorial here.

Here is the link to the Congressional Budget Office (CBO) report.

IBD concludes their editorial by writing:

"As we note above, businesses are showing a little spring their step. And the stock market, as measured by the S&P 500 Index, is up nearly 11% since Trump was elected. Investors clearly expect more than 2% growth.

"Trump can do a lot to shrink the regulatory state. But that high corporate tax rate is worrisome. Sen. Majority Leader Mitch McConnell says tax reform must wait until next year. But why wait? Republicans have a great chance to turn the economy into a growth machine. It would be a shame if their political dithering blew it."

Growls readers are urged to make their views about the competitiveness of the United States' corporate income tax rate known to their representatives in Congress. Contact information is available at the Library of Congress' Congress.gov. Taxpayers living in Virginia's Arlington County can contact:

  • Senator Mark Warner (D) -- write to him or call (202) 224-2023
  • Senator Tim Kaine (D) -- write to him or call (202) 224-4024
  • Representative Don Beyer (D) -- write to him or call (202) 225-4376

Ask for a written response. And tell them ACTA sent you.


TrackBack URL for this entry: