March 17, 2011
We're No. 1 (or about to be, anyway)
The Carpe Diem blog reports that the United States is about to be No. 1 in corporate tax rates among the OECD (Organization for Economic Cooperation and Development) countries. Unfortunately for corporations, that No. 1 ranking is from the highest down, not the lowest up.
Our current combined federal and state corporate tax rate is 39.2 percent. Japan is currently at the top of the list with a 39.54% rate, but its rate is scheduled to drop below ours on April 1.
Of course, these numbers don't tell the whole story. These are statutory rates, and they don’t take into account exemptions, credits, and different definitions of income that affect the percentage of income corporations actually pay in each country. But these numbers certainly raise issues for anyone concerned about the United States’ international competitiveness.