The difference between marginal tax rates and effective tax rates is the difference between night and day. After all, on a marginal-rate basis, the U.S. has th

The difference between marginal tax rates and effective tax rates is the difference between night and day. After all, on a marginal-rate basis, the U.S. has the highest corporate income tax rate in the world. On an effective-rate basis, the U.S. is competitive with nations which do not have a corporate income tax rate. Many large U.S. corporations have effective rates in the low single digits and in some cases have negative effective rates.