The Corporate-Tax Conundrum
Of all forms of taxes, those on corporate income are the most harmful to economic growth, and the potential damage mounts as capital becomes more mobile. That is why countries everywhere have been cutting their corporate tax rates – and why the US should follow suit.
BERKELEY – The United States now has the highest statutory corporate-income tax rate among developed countries. Even after various deductions, credits, and other tax breaks, the effective marginal rate – the rate that corporations pay on new US investments – remains one of the highest in the world.