During negotiations regarding raising the nation's debt limit, congressional Republicans have defended tax loopholes for corporations, claiming that America has a high corporate tax rate that is stifling economic growth and job creation. But the Center for Tax Justice (CTJ) has crunched the most recent data from the Organization for Economic Cooperation and Development (OECD), the Office of Management and Budget, and the Census Bureau, and finds that "the U.S. is already one of the least taxed countries [pdf] for corporations in the developed world."Of course.
As a share of GDP, the U.S. had the second lowest tax rate, behind only Iceland. This statistic flips on its head the often-repeated Republican charge that America has the second highest corporate tax rate in the world (which is only true on paper). In 2009, U.S. corporate taxes had fallen to only 1.3 percent of GDP, from 4 percent in 1965.
Conservatives love to point out that other OECD countries have lowered their corporate tax rates in recent years, but they conveniently ignore [pdf] that "these countries have also closed corporate tax loopholes while the U.S. has expanded them."
Tuesday, July 5, 2011
Number of the Day
One: The number of countries in the rest of the developed world who have a lower corporate tax rate than the US. That one is Iceland.