Tuesday, July 18, 2017
Veronique de Rugy (Mercatus Center), Reforming US Corporate Taxes:
The United States has fallen far behind other developed countries when it comes to corporate tax reform. In contrast to other developed nations, the United States has declined to reform the way it taxes corporations. Consequently, it now has the highest statutory corporate income tax rate of the G20 countries. The federal government needs to lower the corporate income tax rate-a reform that will improve the competitiveness of American businesses and encourage economic growth.
The chart and the table show the changes in corporate income tax rate implemented by a variety of these countries between 2003 and 2012. Many countries have reduced their corporate income tax rates, some by up to 10 percent, during that 10-year period. Back in 2003, the United States had the third-highest tax rate, behind Germany’s and Japan’s. Both Germany and Japan have cut their rates since 2003, leaving their current rates below those in place in the United States.