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The US effective tax rate for corporations is pretty much comparable to other developed countries' effective rates [1], because the US has more deductions, writ
by smallnamespace 10y ago
The US effective tax rate for corporations is pretty much comparable to other developed countries' effective rates [1], because the US has more deductions, write-offs, and tax holidays.
If you're talking about cutting the statutory rate while also eliminating deductions and simplifying the code, I'm all for that (ditto for personal income taxes). A huge complicated tax code benefits big corporations more than your small business owner, because tax lawyers and accountants are largely a fixed cost.
But let's not keep repeating the misguided fact that US corporations pay unusually high taxes -- they simply don't.
[1] http://www.forbes.com/sites/taxanalysts/2015/03/25/the-truth-about-corporate-tax-rates/#f29735920a54 http://www.forbes.com/sites/taxanalysts/2015/03/25/the-truth...
- usrusr 10y agoWhen looking at effective tax rates, one might want to include the cost for all the experts employed to get to the difference between nominal and effective tax rate, and the brain drain these careers impose on more productive disciplines. But you will have a hard time finding a country where people are not convinced that their tax system is the worst, so maybe the US is not particularly bad in that way either. The observation that a complicated makes the big guy part a lower effective rate than the small guy should be much more popular, I wish someone established a good name for it.