The key findings of the latest summary of worldwide corporate tax data published by The Tax Foundation are:
- The United States has the third highest general top marginal corporate income tax rate in the world at 39.1 percent, exceeded only by Chad and the United Arab Emirates.
- The worldwide average top corporate income tax rate is 22.6 percent (30.6 percent weighted by GDP).
- By region, Europe has the lowest average corporate tax rate at 18.6 percent (26.3 percent weighted by GDP); Africa has the highest average tax rate at 29.1 percent.
- Larger, more industrialized countries tend to have higher corporate income tax rates than developing countries.
- The worldwide (simple) average top corporate tax rate has declined over the past decade from 29.5 percent to 22.6 percent.
- Every region in the world has seen a decline in their average corporate tax rate in the past decade.
#1 by Robert A. Vella on August 29, 2014 - 7:28 AM
Marginal tax rates are not that meaningful in the U.S., particularly for corporations and income derived from capital investment, because of the myriad exemptions, loopholes, and subsides contained within its overly complex tax law. The effective tax actually paid by corporations is a better indicator, see: http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/index.html
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#2 by Bogdan Marius Beleuz on August 30, 2014 - 8:22 PM
Hi Robert,
Thank you for the link, it “illuminated” me.
All the best!
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#3 by bwhite21 on September 1, 2014 - 3:34 PM
Good point Robert. It is wage earners in US that are taxed burdened, not corporations.
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