Thursday, September 27, 2012
KPMG has released Competitive Alternatives Special Report: Focus on Tax (2012 Edition):
Our goal in preparing this supplement is to offer a wide-ranging methodology to assess the numerous and complex factors affecting a company’s tax burden, in order to provide a simple and effective approach for cross-location comparisons based on the tax results of different business scenarios.
To this end, this report compares the total tax burden faced by companies in each country and city, including:
- Corporate income taxes
- Capital taxes
- Sales taxes
- Property taxes
- Miscellaneous local business taxes
- Statutory labor costs (i.e., statutory plan costs and other wage-based taxes).
Total tax costs are compared between countries and cities using a Total Tax Index (TTI) for each location. The TTI is a measure of the total taxes paid by corporations in a particular location, expressed as a percentage of total taxes paid by corporations in the US. Thus, the United States has a TTI of 100.0, which represents the benchmark against which the other countries and cities are scored.
The United States ranks 8th in tax competitiveness, down from 6th last year:
The leading U.S. city in tax competitiveness is Cincinnati, which ranks16th:
(Hat Tip: Joshua LeFevre.)