United States could have highest corporate tax rate within a year

“We are very kind to our corporations, overly kind,” said Robert McIntyre, president of Citizens for Tax Justice, also a Washington DC based research group. “We let our companies write off their investments much quicker than anybody else in the world and we have tax breaks for everything under the sun that other countries don’t allow.”

McIntyre noted that the United States may have one of the highest corporate tax rates, but it continually ranks as the country with the lowest rate of corporate tax collections.

While the fact holds true, there’s a perfectly good explanation, said Hodge.

“That’s like Neiman Marcus complaining that they have lower revenues and profits than Wal-Mart,” he said. “When you have everyday low prices, you attract a larger market. You become more competitive than everyone else and customers will flock to you. The same thing goes for corporate tax rates.”

Despite Japan’s decision to lower taxes on corporations, Democrats in Congress and the White House have made it clear they have no intention to follow Japan’s path any time soon.

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