April 1 is a date that every politician and business executive in America should circle on the calendar. That's when Japan cuts its corporate tax rate to 36.8% from 39.5%. The United States will then hold the title of highest corporate tax rate, with average combined federal and state profit levies of 39.2%.I can almost hear the progressives cheering. “Yes!”, they'll say. We're leading the world, as we should be.
Yes, that's higher than Sweden. Higher than Russia. And China, Mexico, Denmark and even France. Doesn't it make you want to break out in a chant: U-S-A, U-S-A?
Me? I just cry for my country's future.
And, as always, remain amazed at how little attention issues like this get from everyday people. As though they don't matter...
Oh, hi, I just came in from a ticker-tape parade celebrating this and read your post.
ReplyDeleteTake a look at http://www.irs.gov/pub/irs-soi/02corate.pdf. The maximum federal corporate tax rate under Saint Ronald was 51%. It's been 39% for a long time, but Obama has proposed lowering it to 28%. Multiple sources indicate that corporations' average federal tax is far less than 39% on the average, and it's not unusual for huge corporations like B of A, Boeing, and Exxon Mobil to pay none at all in a given tax year. On a related note, the percentage of federal revenue coming from corporations reached a historical low of 6.6% in 2009, down from 30% or more in the '50s.
I haven't mentioned state corporate tax, but I'm sure you agree that the states have the right to set their respective corporate tax structures any way they see fit. But they must be charging an obscene amount if they raise the overall maximum rate from 39% all the way to... 39.5%!
Nice talking to you, but I must get back to serving my socialist masters...