The Tax Foundation mapped out the variations in corporate tax rates across the globe, and the results are fairly easy to understand.
The United States has the third highest corporate income tax rate in top 35 industrialized nations, according to the Organization for Economic Co-operation and Development (OECD).
The U.S. corporate tax rate is “16.4 percentage points higher than the worldwide average of 22.5 percent and a little more than 9 percentage points higher than the worldwide GDP-weighted average of 29.5 percent,” according to the Tax Foundation.
In fact, the average global tax rate has been declining over the past decade, furthering the divide between the United States and many other nations. Some 75 other nations have corporate tax rates that fall between zero and 20 percent.
The U.S. faces a great dilemma in having such a high corporate tax rate, namely that it faces tough competition for domestic business investment.
Having a high corporate tax rate encourages corporations to move their operations overseas and not invest (or reinvest) in American business.
Medtronic, in 2014, moved their operations from Minneapolis to Ireland by acquiring Covidien, reports CNN Money. This has already played out in recent months, with companies like Facebook and Pfizer moving operations to the tax haven of Ireland to conduct business in a much more tax friendly environment.
The same can be seen in the world of auto-manufacturing, with companies moving their operations to Mexico. (RELATED: More Companies Moving To Mexico, Finding Fewer Laborers To Fill Jobs)
|United Aram Emirates||55.00%||55.00%|
(Data Compiled From Tax Foundation, KPMG, And Deloitte. Chart by Robert Donachie).
Send tips to email@example.com
All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact firstname.lastname@example.org.