One Year Anniversary of US Having Highest Corporate Tax Rate in Developed World
The distinction is bestowed upon us thanks to a federal and state integrated rate of 39.2 percent.
For perspective, the average rate in the developed world (OECD) is only 25 percent. Our six major trading partners – Canada, Mexico, the United Kingdom, Japan, Germany, and France – all have a lower corporate rate than we do. As a result, capital and jobs continue to flow overseas, rather than staying here to create jobs, increase wages, fund pensions, invest in new business, or grow nest eggs.
Thanks, Mr. President, for a number one ranking that no one is happy about.
Reducing the corporate tax rate is about more than remaining competitive with our major trading partners. Reducing the rate from 39.2 to the average rate of 25 percent would create more than 580,000 jobs annually over the next decade. According to the Milken Institute, such a policy shift would boost GDP by 2.2 percent. For President Obama, whose recovery has been the worst of any recovery since World War II, this should be easy.
This is about more than economic growth for the national economy. American families would also benefit. According to the Heritage Foundation, A typical family of four's after-tax income would rise on average by $2,484 per year with a 25 percent corporate tax rate.