Good Morning Gentle Readers,
The Tax Foundation released a study of world wide corporate taxation today that reached a few unsurprising conclusions.
- The US has the highest corporate tax rates in the civilized world.
- Corporations tend to invest less capital in countries where tax rates are high.
- Corporations tend to use complex methods of tax planning to minimize the negative effect of high tax rates.
- Countries with high corporate tax rates see less revenue flow into the treasury than countries with lower rates.
My Californicate clients will be delighted to learn that Ca corporate rates are a full two percentage points above the national average (8.84% vs 6.6%).
The study concludes that
U.S. lawmakers should reduce the federal corporate rate to 25 percent. That would bring the combined federal-state rate down to 30 percent, just above the OECD average of 29.2 percent.
The Tax Commonsewer
TAG: tax reform