The High US Corporate Tax Rate
From the Small Business Administration:
Under President Ronald Reagan’s guidance, the top corporate income tax rate was reduced from 46% to 34%. However, in 1993, that rate was increased to 35%.
Since we are in a global competition for capital, how does the U.S. tax rate compare to other nations? Well, quite poorly.
In May 2004, KPMG published a corporate tax rate survey of 69 countries. The U.S. tax rate of 40% — calculated with the 35% federal rate plus a 5% rate approximation for state taxes – ranked second highest. Only Japan’s rate of 42% was higher.
It is worth noting those ranking best. For example, eight nations imposed corporate tax rates of less than 20%, according to the KPMG survey.
Country Corporate Tax Rate
Hong Kong 17.5%
These comparisons need to be kept in mind as policymakers ponder changes on the tax front.