This Is How US Corporate Taxes Measure Up In The World, In One Handy Map

Robert Donachie | Capitol Hill and Health Care Reporter

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)

Chart: Tax Foundation

 

Country Tax Foundation KPMG Deloitte
United Aram Emirates 55.00% 55.00%
Puerto Rico 39.00%
United States 39.60% 40%
Argentina 35.00% 35.00% 35.00%
India 34.60% 34.61%
France 34.40% 33.30% 33.30%
Brazil 34.00% 34.00% 34.00%
Venezuela 34.00% 34.00%
Belgium 34.00% 33.99% 33%
Germany 15.00% 15%
Ireland 12.50% 12.50%
Worldwide Average 22.50%

(Data Compiled From Tax Foundation, KPMG, And Deloitte. Chart by Robert Donachie).

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