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> Raising the corporate tax rate from the current 21 percent to 28 percent, combined with the average state-level corporate tax rate, would give the U.S. the se
by woodruffw 3y ago
> Raising the corporate tax rate from the current 21 percent to 28 percent, combined with the average state-level corporate tax rate, would give the U.S. the second-highest combined corporate tax rate in the OECD, significantly worsening the competitive position of U.S. businesses and reducing prospects for business investment and workers.
This is pretty misleading: the US's effective corporate tax rate is significantly below the OECD average[1], and has been so for a while. The Tax Foundation could lay the blame for this on tax complexity, but curiously only seems to blame tax complexity when taxes go up for businesses, not down.
[1]: https://stats.oecd.org/index.aspx?DataSetCode=CTS_ETR https://stats.oecd.org/index.aspx?DataSetCode=CTS_ETR
- nullbyte 3y agoThose are the current stats. If the corporate tax rate is raised to 28%, as Biden is proposing, the US would be far above the average.
- woodruffw 3y agoIf I'm reading this list correctly, an effective 28% corporate tax rate would put us in the middle of the OECD pack. But even then: raising the statutory rate to 28% does not actually guarantee that the effective rate rises to 28%. Edit: By the Tax Foundation's own calculations, the OECD average effective rate is around 26% when adjusted by GDP[1]. So 28% is not extraordinarily out of band, especially when we consider that that's statutory and not effective. [1]: https://taxfoundation.org/data/all/global/corporate-tax-rates-by-country-2022/ https://taxfoundation.org/data/all/global/corporate-tax-rate...