Study: The US really does have the highest corporate tax rate, loopholes and all

AEI ^ | February 6, 2014 | James Pethokoukis

[1rudeboy]

Source: Tax Foundation

Sure, the US may have the highest statutory corporate tax rate, but so what? No one pays that rate because of the all the tax breaks and other loopholes, right? A new analysis by the Tax Foundation offers some disturbing possible answers to those questions:

The marginal effective tax rate (METR) on corporate investment (i.e., the tax impact on capital investment as a portion of the cost of capital) is 35.3 percent in the U.S.—higher than in any other developed country. The U.S. has maintained the highest METR in the OECD since 2007, when Canada’s multiyear program of corporate tax reform brought its METR below the G-7 average. … The excessively high corporate income tax rate has become a cause of tax inefficiency and ineffectiveness by leading businesses to excessive tax planning and tax-induced avoidance of incorporation. … The findings dispel the misconception that while the U.S. statutory corporate tax rate is high, “loopholes” in the code make our effective tax rates competitive with those found in other developed countries.

It is also worth noting that the burden of the corporate income tax falls on investors and workers. Several studies have shown that a $1 increase in corporate tax revenue might decrease aggregate wages by more than $1 — high-end estimates show them falling $2 to $4. That means a corporate tax cut might be a big gain for lower-income Americans.

[1rudeboy]

Bring back American jobs. Now.

Just sayin'.

[gusopol3]

Amazing as the big Democrat talking point is “ stagnating wages” that the Republicans can’t put together a comprehensive strategy even on this.

[skeeter]

I'd like to know how the US stacks up against the world on individual tax rates, loopholes, brackets and all.

I'd be willing to bet we're way down on that list, as well.

People need to wake up to the fact that the government has 53% of us in chains, figuratively.

[aMorePerfectUnion]

My next biz will be overseas...

[James C. Bennett]

[skeeter]

The thing tha amazes me is how robust the US economy is/was. With all of the crap the state has loaded on to its/our backs it/we can still compete.

[James C. Bennett]

Can't find the one for 2013.

[Toddsterpatriot]

The best way is to raise taxes, obviously.

[1rudeboy]

Gotta pay for our healthcare somehow! And those food stamps.

[khelus]

Global corporate is quite proficient in eluding corporate taxes in the US. OTH small business is hit very hard.

http://news.sky.com/story/1006814/apple-paid-just-2-percent-tax-on-overseas-profits

http://www.bloomberg.com/news/2010-05-13/exporting-profits-imports-u-s-tax-reductions-for-pfizer-lilly-oracle.html

http://www.bloomberg.com/news/2010-05-13/american-companies-dodge-60-billion-in-taxes-even-tea-party-would-condemn.html

http://topics.bloomberg.com/the-great-corporate-tax-dodge/

[Organic Panic]

WE’RE NUMBER ONE!!! Keep up the high taxes, over regulated environment, labor unions, crony shakedowns, Obamacare mayhem, and we will be unstoppable in our race to the bottom.

[E. Pluribus Unum]

Except for GE.

GE hearts Ubama.

[1rudeboy]

Won't get tired of posting this link, ever:

Get Konnected with The Kronies Action Figures [YouTube]

[Amendment10]

Thank you for referencing that article 1rudeboy.

What you're probably not going to hear about federal taxes in the near future from the corrupt media, and certainly not the RINOs or Democrats in DC is the following. As mentioned in related threads, Justice John Marshall had officially clarified the following about Congress's power to lay taxes. Marshall had indicated that Congress is prohibited from laying taxes in the name of state power issues, essentially any issue which Congress cannot justify under it constitutional Article I, Section 8-limited powers.

“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.

Also note that Thomas Jefferson had indicated that, in the country's early history, only the rich paid federal taxes.

"The rich alone use imported articles, and on these alone the whole taxes of the General Government are levied (emphasis added). … Our revenues liberated by the discharge of the public debt, and its surplus applied to canals, roads, schools, etc., the farmer will see his government supported, his children educated, and the face of his country made a paradise by the contributions of the rich alone, without his being called on to spend a cent from his earnings." --Thomas Jefferson to Thaddeus Kosciusko, 1811.

Note that the rich could pay all the taxes to run the federal government because Justice Marshall's case precedent limiting Congress's power to lay taxes was respected in those days.

But note that now, most everything that we buy in stores is imported because labor unions have forced the manufacture of goods out of the country. So not only is everybody now buying imported goods, paying federal import taxes like only the rich used to do, but corrupt Congress is blatantly ignoring Justice Marshall's case precedent which limits its power to lay taxes.

Are we having fun yet?

[expat_panama]

tx fer the ping!

It’s a good confirmation of that which we already know, that what ails America’s economy is the war on business. Not that this info could convince a leftist —hell, they wouldn’t care if ten million lost their jobs all at once; and we know that because it did and they didn’t.

[1010RD]

Correct. The corporate tax just exacerbates crony capitalism. The correct rate is zero.

Keep in mind that if we got rid of the corporate tax completely, the government won’t be able to manage churches, conservative organizations, etc.

This needs to be the major goal of the first year of a GOP Presidency and Congress.