How do U.S. corporate tax rates compare to other countries?

 SHOULD CORPORATE TAX RATES BE COMPETITIVE WITH THE COMPETITION?

OR IS IT ALL IRRELEVANT TO THE ECONOMIC HEALTH OF THE NATION?

We see that the Biden administration is now about to focus on taxes,  raising them. We have been hearing from the democrats that lowering the corporate tax rate form 35 % to 21 % was a giveaway to the rich. That it only benefited the rich.  If we entice corporations to locate or expand in this country, is it good for everyone or just the rich? If we increase private sector job growth will that increase tax revenues as the economy grows and produces more wealth? If corporate profits increase will the government get more tax revenues? Do profitable companies create opportunities for pension funds to grow or does that only benefit the rich? Do government financed jobs really create long term prosperity or does that approach transfer wealth and power to government from the private sector? 

So what are the corporate tax rates in 2020 compared to the rest of the developed world?

First lets look at our producer competition:

China        25%

Japan         29%

Korea        27%

Taiwan      20%

Viet Nam  20%

Mexico     30%

Canada     26%

 

Most countries only have a national corporate tax, but in the U. S state corporate taxes range form 2.5% in North Carolina to 11.5%  in New Jersey. This could in effect could be added to the federal rate to get the total corporate rate for a company in the U.S. 23.5? in N.Carolina and 32.5% in New Jersey. Pennsylvania and 5 other have state corporate rates at 9% or more. Pa. total rate 30%. Do we accept the fact that expansions and new locations for corporations take into account the tax they will be subject to? It is not the only criteria, but it is a factor. That and over regulation..

At Bidens 28%, Corporations in New Jersey would be subject to a 39.5% tax rate. Would this bode well for the economic future of New Jersey? Will a higher rate discourage international corporations from expanding in this country?

The rest of the developed world rates are as follows:

Ireland                 12.5%

United Kingdom 19%

Israel                    23%

Italy                      27%       

Denmark              22%

Finland                 20%

France                   32%

Germany               29%

Russia                   20%

Mexico                  30%

Does anyone believe that in the long haul raising tax rates will result in more revenue for the taxing authorities. It may in the short run, but you inevitably see economic activity moving to the places that are the most attractive to these companies.

If you want to create jobs, and with it a growth of wealth you want to make your location the most attractive  place to do business. Low taxes and  modest regulation all  encourage the growth of the economy and with it more tax revenue. Extracting wealth off the top is like eating the seed corn. And borrowing money to create jobs, is just a dead end policy. Why would we want to be on the higher end of the tax rate, rather than on the lower end?

numbers from the tax foundation.