Paul L. Caron
Dean



Monday, August 22, 2016

U.S. Corporate Tax Rate Is Third Highest In World Among 173 Countries, Behind Only Chad, United Arab Emirates

Tax Foundation logoTax Foundation, Corporate Income Tax Rates around the World, 2015:

It is well known that the United States has the highest corporate income tax rate among the 34 industrialized nations of the Organisation for Economic Co-operation and Development (OECD). However, it is less well known how the United States stacks up against countries throughout the entire world. Expanding the sample of countries and tax jurisdictions to 173, the U.S.’s corporate tax rate of 39 percent is the third highest in the world, tied with Puerto Rico and lower only than the United Arab Emirates and Chad, which have rates of 55 and 40 percent, respectively. The U.S. tax rate is 16 percentage points higher than the worldwide average of 22.8 percent and a little more than 9 percentage points higher than the worldwide GDP-weighted average of 29.8 percent. As with the average tax rate among industrialized nations, the average worldwide tax rate has been declining in the past ten years, pushing the United States farther from the norm. This worldwide decline in corporate tax rates can been seen in all regions of the world.

Table 1

Tax Foundation 2

https://taxprof.typepad.com/taxprof_blog/2016/08/us-corporate-tax-rate-is-third-highest-in-world-among-173-countries-behind-only-chad-united-arab-emi.html

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Comments

High apparent tax rates, corporate and personal, don't take into account all the ways the wealthy can evade those taxes. That's why the Democrats have become the party of giant corporations and the very wealthy. They get deductions and loop-holes just for them, while the rest of America gets that phenomenally high rate.

Posted by: Michael W. Perry | Aug 22, 2016 7:10:19 AM

Nominal corporation tax rates are almost entirely meaningless.

Posted by: Publius Novus | Aug 22, 2016 9:08:20 AM

The U.S. average effective tax rate is 27.1% compared with 27.7% for the other 30 OECD countries. This article, while perhaps being correct, is misleading. Remember, figures lie and liars figure-numbers can be twisted and manipulated to distort reality.

Posted by: gator | Aug 23, 2016 5:28:31 AM