An analysis by the Cato Institute ranks the United States fourth among 90 countries for the highest corporate tax rate.
The overall rate of 35.6 percent “is almost twice the average rate for the 90 countries studied, and it is also the highest rate among the major industrial nations,” the study says.
“These results underscore the need for U.S. policymakers to tackle corporate tax reform.”
For the last decade, high corporate tax rates have been driving an increasing amount of U.S. businesses overseas, to incorporate themselves in foreign tax havens.
Between 2000 and 2011, the U.S. experienced a net loss of 46 Fortune Global 500 company headquarters, according to a report by Ernst and Young.
Japan once shared with the U.S. the distinction of having the highest corporate tax rates of any developed country. These tax rates have resulted in large businesses moving to tax havens and countries with substantially lower tax rates, like Ireland or Switzerland.
Recently, however, Japan, lowered their corporate tax rate, meaning the U.S. now levies the highest corporate tax rate of all Organisation for Economic Co-operation and Development (OECD) countries, at rate of 35 percent. The average OECD corporate tax rate is 25 percent.
The overall rate of 35.6 percent “is almost twice the average rate for the 90 countries studied, and it is also the highest rate among the major industrial nations,” the study says.
“These results underscore the need for U.S. policymakers to tackle corporate tax reform.”
For the last decade, high corporate tax rates have been driving an increasing amount of U.S. businesses overseas, to incorporate themselves in foreign tax havens.
Between 2000 and 2011, the U.S. experienced a net loss of 46 Fortune Global 500 company headquarters, according to a report by Ernst and Young.
Japan once shared with the U.S. the distinction of having the highest corporate tax rates of any developed country. These tax rates have resulted in large businesses moving to tax havens and countries with substantially lower tax rates, like Ireland or Switzerland.
Recently, however, Japan, lowered their corporate tax rate, meaning the U.S. now levies the highest corporate tax rate of all Organisation for Economic Co-operation and Development (OECD) countries, at rate of 35 percent. The average OECD corporate tax rate is 25 percent.
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