U.S. Has Second Highest Corporate Income Tax
On August 5, based upon a study by the Tax Foundation, we growled that state corporate income taxes hurt workers wages.
The Tax Foundation followed up that study with one showing “that the U.S. corporate tax rate has fallen even further out of step with the rest of the industrialized world as countries such as Canada, the Czech Republic, Korea, and Sweden have cut their corporate rates in 2009, lowering the average statutory corporate tax rate of all OECD nations to 26.5 percent.” More specifically, the Tax Foundation said:
“With a combined federal and state corporate tax rate of 39.1 percent, the U.S. continues to impose the second-highest overall corporate rate among industrialized countries. Only Japan's 39.5 percent combined rate is higher . . . .
[ . . .]
“America's high corporate tax rate should be a red flag to U.S. lawmakers worried about the country's flagging economic growth, slow wage growth, and overall global competitiveness. An important study released last year by economists at the OECD found that of the various taxes a country can impose, "corporate taxes are the most harmful tax for economic growth." High personal income taxes were found to be the second most harmful, followed by consumption taxes, with property taxes being the least harmful.”
Instead of gimmicks such as so-called "green jobs" and “cash for clunkers, Congress and the President should pass sweeping tax cuts in order to get the economy growing and really helping the jobless. The chart below is from the Tax Foundation study:
