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

Ireland 12.5%

Cyprus 15%

Hungary 16%

Chile 17%

Hong Kong 17.5%

Iceland 18%

Poland 19%

Slovakia 19%

These comparisons need to be kept in mind as policymakers ponder changes on the tax front.

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Jim Hoft is the founder and editor of The Gateway Pundit, one of the top conservative news outlets in America. Jim was awarded the Reed Irvine Accuracy in Media Award in 2013 and is the proud recipient of the Breitbart Award for Excellence in Online Journalism from the Americans for Prosperity Foundation in May 2016. In 2023, The Gateway Pundit received the Most Trusted Print Media Award at the American Liberty Awards.

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