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It's not just the nominal rate. The average effective corporate tax rate is also quite a bit higher for the US than other developed countries; according to a r

by briandh 12y ago

It's not just the nominal rate. The average effective corporate tax rate is also quite a bit higher for the US than other developed countries; according to a report by PricewaterhouseCoopers and the World Bank, 27.9% versus an OECD average of 15.9%. [1 citing 2] The right wing think-tank AEI reported a smaller disparity of about 9% a few years earlier. [3] For what it's worth, these rates are fairly variable over the years. So "huge numbers" seems like quite a stretch. Moreover, I used the broader term "policies" rather than "rates" for a reason. The US's worldwide taxation scheme, for instance, is in itself problematic. [1] http://barbwire.com/2014/10/15/analysis-are-us-corporate-taxes-really-the-highest-in-the-world/ http://barbwire.com/2014/10/15/analysis-are-us-corporate-tax... [2] http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Special-Reports/Paying-Taxes-2014.pdf http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/... [3] http://www.aei.org/article/economics/fiscal-policy/taxes/report-card-on-effective-corporate-tax-rates/ http://www.aei.org/article/economics/fiscal-policy/taxes/rep...

Retric 12y ago
After examining 288 corporations that where consistently profitable every year for 5 years. On average they "paid an effective federal income tax rate of just 19.4 percent." Which is close to the "15.9 percent" you linked. However, "Twenty-six of the corporations, including Boeing, General Electric, Priceline.com and Verizon, paid no federal income tax at all over the five year period. A third of the corporations (93) paid an effective tax rate of less than ten percent over that period." The point is with such high variability in tax rate's companies spend a lot of time looking for ways to avoid paying taxes vs. building better products etc. PS: Yea, just like the articles you linked this is also biased but the numbers are not made up. http://www.ctj.org/corporatetaxdodgers/sorrystateofcorptaxes.pdf http://www.ctj.org/corporatetaxdodgers/sorrystateofcorptaxes...

by briandh 12y ago

Retric 12y ago

After examining 288 corporations that where consistently profitable every year for 5 years. On average they "paid an effective federal income tax rate of just 19.4 percent." Which is close to the "15.9 percent" you linked. However, "Twenty-six of the corporations, including Boeing, General Electric, Priceline.com and Verizon, paid no federal income tax at all over the five year period. A third of the corporations (93) paid an effective tax rate of less than ten percent over that period." The point is with such high variability in tax rate's companies spend a lot of time looking for ways to avoid paying taxes vs. building better products etc. PS: Yea, just like the articles you linked this is also biased but the numbers are not made up. http://www.ctj.org/corporatetaxdodgers/sorrystateofcorptaxes.pdf http://www.ctj.org/corporatetaxdodgers/sorrystateofcorptaxes...