TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Monday, February 23, 2009

Merrill: Competitive Tax Rates for U.S. Companies

Peter R. Merrill (PricewaterhouseCoopers, Washington, D.C.) has published Competititve Tax Rates for U.S. Companies: How Low to Go?,122 Tax Notes 1009 (Feb. 23, 2009).  Here is the abstract:

This article concludes that to match the average top statutory corporate tax rate in the other 29 OECD member countries, the U.S. federal corporate tax rate (taking into account state income taxes) would need to be reduced from 35% to between 21% and 25.5%, where the lower benchmark is a simple average and the higher benchmark is GDP-weighted. This range is less than the 28% corporate tax rates that Chairman Rangel reportedly is considering for his new comprehensive income tax reform bill. The article also finds that effective tax rate calculations, which take into account both the tax base and tax rate, show that the U.S. corporate tax burden is quite high by international standards. The benchmark tax rate relevant for competitive taxation of the foreign-source income of U.S. multinationals (19%) is considerably lower than the average OECD tax rate.


Scholarship, Tax | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Merrill: Competitive Tax Rates for U.S. Companies:


Unless the table is effective rate vs. effective rate, I've got no reason to click through. If we match OECD nominal rates without any other change then our effective rates will be the envy of the industrialized world.

Posted by: Effective not Nominal | Feb 23, 2009 6:06:32 AM