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Corporate Tax Competitiveness Rankings for 2012

hypocritexposer

Well-known member
Corporate income tax reform is receiving serious consideration in Washington. The Obama administration has suggested reducing the federal corporate tax rate from 35% to 28% while broadening the tax base. Presidential candidate Mitt Romney has said that he would cut the corporate tax rate to 25% if elected. ...

This bulletin presents new estimates of marginal effective tax rates (METRs) on corporate investment for 90 countries. We find that the U.S. effective tax rate on new corporate investment is 35.6% in 2012, which is almost twice the average rate for the 90 countries studied, and it is also the highest rate among the major industrial nations. These results underscore the need for U.S. policymakers to tackle corporate tax reform.

Effective Tax Rates for 2012 Figure 1 summarizes our corporate tax rate calculations. The U.S. METR is 35.6% in 2012, or almost twice the 90-country average of 18.2%. The average rate for the 34 Organization for Economic Cooperation and Development (OECD) nations is just 19.4%. While the U.S. corporate tax rate has remained high, the global trend for both statutory and effective corporate tax rates has been downward.

Table 1 on the next page shows METR calculations for 90 countries, including separate figures for the services and manufacturing sectors. The United States has the fourth highest effective tax rate on corporate investment in the world after Argentina, Chad, and Uzbekistan.

The United States has a high METR, a high statutory tax rate, and numerous special preferences in its corporate tax system. This noncompetitive and nonneutral tax structure is harmful to growth, and it results in relatively low government revenues because the high rates induce businesses to shift their investments and profits abroad.
http://taxprof.typepad.com/taxprof_blog/2012/09/corporate-tax-competitiveness.html
 

hypocritexposer

Well-known member
Canadian Reforms
U.S. policymakers should examine the recent corporate tax reforms in Canada, which is America’s largest trading partner. Since 2000 these have included:

Cutting the federal statutory tax rate from 29.12 percent to 15 percent and cutting the average provincial tax rate from 13.3 percent to 11.1 percent.

Eliminating most federal and provincial capital taxes, which were levies on a measure of business assets.

Removing sales taxes on capital goods in most provinces as a result of harmonizing provincial sales taxes with the federal Goods and Services Tax (a form of value-added tax).

Adopting generally more neutral capital cost allowances for the corporate income tax.

Scaling back some of the special preferences under the corporate income tax.
The reforms since 2000 have created a much more competitive and neutral corporate tax system. The METR on corporate investment has been cut substantially, which has spurred greater investment and growth. In addition, multinational corporations seem to be shifting more profits into Canada because of the lower tax rates.2
The cut in corporate tax rates does not seem to have lost Canadian governments much, if any, revenues. Figure 2 shows that the combined federal-provincial tax rate fell from 42.4 percent in 2000 to 29.4 percent in 2010. (The rate has fallen further since then). Despite this 31 percent cut and the 2009 recession, tax revenues as a share of gross domestic product (GDP) have remained roughly constant due to rising corporate taxable income.3
http://www.cato.org/pubs/tbb/tbb_65.pdf
 

Traveler

Well-known member
http://www.independentsentinel.com/2012/09/obamas-tax-plan-from-the-depths-of-hell-will-impoverish-the-middle-class/


Then there is the Obamacare tax which will soon be unsustainable. Medicare has been robbed of future increases to help pay off Obamacare. Medicaid and Social Security have not been dealt with and they are unsustainable. Obama has been quick to criticize Ryan’s plan but where is his?

The only ones who escape under Obama’s tax plan are people who are on government welfare or who work off the books.

Can’t wait until he has “more flexibility.”
 
A

Anonymous

Guest
Traveler said:
http://www.independentsentinel.com/2012/09/obamas-tax-plan-from-the-depths-of-hell-will-impoverish-the-middle-class/


Then there is the Obamacare tax which will soon be unsustainable. Medicare has been robbed of future increases to help pay off Obamacare. Medicaid and Social Security have not been dealt with and they are unsustainable. Obama has been quick to criticize Ryan’s plan but where is his?

The only ones who escape under Obama’s tax plan are people who are on government welfare or who work off the books.

Can’t wait until he has “more flexibility.”






Poll: Voters trust Obama over Romney on addressing Medicare issues


By Daniel Strauss - 09/24/12 10:03 AM ET
Voters in a dozen coveted battleground states trust President Obama over Mitt Romney on reforming Medicare, according to a new poll.

Gallup released a poll Monday, which found that 50 percent of voters in the 12 swing states feel Obama can better "address issues facing the Medicare system" compared to 44 percent who say that Mitt Romney can. The 12 states Gallup surveyed were Colorado, Florida, Iowa, Michigan, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Virginia and Wisconsin.


The poll found similar numbers nationally. According to Gallup, 51 percent trust Obama to handle the problems facing Medicare while 43 percent trust Romney.
 
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