US Ranks Terrible 30 out of 34 for OECD Tax Competitiveness

[AZJoe]

US Ranks Terrible 30 out of 34 for OECD International Tax Competitiveness (https://taxfoundation.org/2017-international-tax-competitiveness-index/)

"The United States, for example, has not reduced its federal corporate income tax rate from 35 percent since the early 1990s. As a result, its combined federal, state, and local corporate tax rate of about 39 percent is significantly higher than the average rate of 25 percent among OECD nations.[2] (https://taxfoundation.org/2017-international-tax-competitiveness-index/#_ftn2) In addition, as most OECD nations have moved to a territorial tax system, the United States has continued to tax the worldwide profits of its domestic corporations. ..."

Ranking 1, 2 and 3 were Estonia, New Zealand and Switzerland.

More (https://taxfoundation.org/2017-international-tax-competitiveness-index/)

[Zippyjuan]

They looked at top marginal tax rates- which is the rate applied to the last dollar a company earns- which in the US is 35%. It ignores any deductions a company may have which can lower the actually taxes they owe. Look at average instead of marginal rates (the average rate the average sized firm actually has to pay) and the picture changes dramatically. Plus marginal rates do not apply to every dollar that firm (or individual) earned- as earnings move above a certain threshold, only the amounts they have above that threshold are taxed at that rate.

At one point in time the US had a marginal income tax rate of 90%- but only a tiny amount of people in the entire country had enough wealth to qualify for it. https://mises.org/library/good-ol-days-when-tax-rates-were-90-percent Can't find numbers at the moment but out of 45 million tax payers, only 10,000 had any of their income in the next lower bracket.


https://imagesvc.timeincapp.com/v3/mm/image?url=https%3A%2F%2Ftimedotcom.files.wordpress .com%2F2017%2F07%2Fscreen-shot-2017-07-18-at-1-03-47-pm.png&w=800&q=85

http://time.com/money/4862673/us-tax-burden-vs-oecd-countries/


As it happens, deductions and other tax strategies mean relatively few U.S. corporations actually get stuck paying the maximum nominal 35% rate, instead paying about 20% on average.


All the same, those the federal corporate income tax represents a relative small part of the U.S. overall tax picture, according the Chicago Fed study — accounting for less than 10% of overall tax revenue.

[oyarde]

So , worse than korea , chile and mexico .

[TheTexan]

They looked at top marginal tax rates- which is the rate applied to the last dollar a company earns- which in the US is 35%. It ignores any deductions a company may have which can lower the actually taxes they owe. Look at average instead of marginal rates (the average rate the average sized firm actually has to pay) and the picture changes dramatically. Plus marginal rates do not apply to every dollar that firm (or individual) earned- as earnings move above a certain threshold, only the amounts they have above that threshold are taxed at that rate.

At one point in time the US had a marginal income tax rate of 90%- but only a tiny amount of people in the entire country had enough wealth to qualify for it. https://mises.org/library/good-ol-days-when-tax-rates-were-90-percent Can't find numbers at the moment but out of 45 million tax payers, only 10,000 had any of their income in the next lower bracket.


https://imagesvc.timeincapp.com/v3/mm/image?url=https%3A%2F%2Ftimedotcom.files.wordpress .com%2F2017%2F07%2Fscreen-shot-2017-07-18-at-1-03-47-pm.png&w=800&q=85

http://time.com/money/4862673/us-tax-burden-vs-oecd-countries/

Given that we have a tax on money that corporations earn, and again a tax on money that gets paid to the employees, and again various taxes on the money they spend, I think it only makes sense to also tax the money that gets paid in taxes.

We can call it the tax tax.

With all the taxes we pay, it would be a great way to raise revenue

[Swordsmyth]

Given that we have a tax on money that corporations earn, and again a tax on money that gets paid to the employees, and again various taxes on the money they spend, I think it only makes sense to also tax the money that gets paid in taxes.

We can call it the tax tax.

With all the taxes we pay, it would be a great way to raise revenue


https://www.youtube.com/watch?v=g0ahJPxfGp4

[AZJoe]

At one point in time the US had a marginal income tax rate of 90%- but only a tiny amount

This is the most ridiculous argument - using the worse scenario as your baseline to justify any wickedness that measure less on some metric scale.
At one time the government stole 90% of people's income above a certain level, therefore stealing 35% is a good thing to advocate? Figures the Zippy is the one advocating for income theft.
Its like saying, my master once beat me six days a week, therefore I support master beating me 3 days every week.

Instead of using worst case precedent to justify more evil actions, why not use the best policy as the standard practice to meet.
At one time the US had a marginal income tax rate of ZERO. Let's hit that high achievement again.

[TheTexan]

This is the most ridiculous argument - using the worse scenario as your baseline to justify any wickedness that measure less on some metric scale.
At one time the government stole 90% of people's income above a certain level, therefore stealing 35% is a good thing to advocate? Figures the Zippy is the one advocating for income theft.
Its like saying, my master once beat me six days a week, therefore I support master beating me 3 days every week.

Instead of using worst case precedent to justify more evil actions, why not use the best policy as the standard practice to meet.
At one time the US had a marginal income tax rate of ZERO. Let's hit that high achievement again.

At one point it was 100% via slavery. Good thing we abolished slavery and there's no such thing anymore!

[AZJoe]

They looked at top marginal tax rates- which is the rate applied to the last dollar a company earns- which in the US is 35%. It ignores any deductions a company may have which can lower the actually taxes they owe. Look at average instead of marginal rates (the average rate the average sized firm actually has to pay) and the picture changes dramatically. Plus marginal rates do not apply to every dollar that firm (or individual) earned- as earnings move above a certain threshold, only the amounts they have above that threshold are taxed at that rate.

This is distortion by Zippy. Yes marginal rates are the highest bracket, and it also means all other income tax rates are below that rate. The country with the lowest marginal rate will have all its other rates below that rate. They can't be higher. This is an indication of competitiveness. The marginal rate is also the rate more crucial to business and investment and thus again more critical to a nation's competitiveness.

It does not ignore deductions. Nothing in the article indicates it does. To the contra, the front page specifically talks about deductions factor for Czech. Further, all nations with income tax have deductions. The methodology may vary but the ultimately income is earnings after expenses, and that is what is taxed. Zippy has presented nothing suggesting any different outcome based on deductions. But as noted, Zippy is in error as deductions are considered.

Of note, the ITCI compilation is based on:

"To measure whether a country’s tax system is neutral and competitive, the ITCI looks at more than 40 tax policy variables. These variables measure not only the level of taxes, but also how taxes are structured. The Index looks at a country’s corporate taxes, individual income taxes, consumption taxes, property taxes, and the treatment of profits earned overseas. The ITCI gives a comprehensive overview of how developed countries’ tax codes compare, explains why certain tax codes stand out as good or bad models for reform, and provides important insight into how to think about tax policy."

[NorthCarolinaLiberty]

http://time.com/money/4862673/us-tax-burden-vs-oecd-countries/


Your OECD chart is from 2014, which was before all the Obamacare tax. Do you have an updated chart?

Furthermore, do you have a projected chart showing how Obamacare tax might climb? Will the US become more like Europe, which is what many here demand? If so, then how many countries on your European chart will be eclipsed by the U.S.?

[ILUVRP]

i still think public corps should pay 20-25 % tax on the money they tell stock holders they make .

ge is a good example , the company has 8.67 billion shares outstanding , they are to make $1.04-1.10 per share in 2017, that is the profit they tell stockholders they will make ( around $9 billion dollars ) .

@ 35% tax rate their tax would be around $3 billion dollars , they paid nothing and got a refund of $400 million , check the effective rates on google/apple/microsoft/exxon mobil .

anyone that thinks big corps are paying 35% on profits should get out of the kool-aid line .

i do think a small company should have a 20% tax rate .