About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Scott A. Hodge & Chris Atkins, U.S. Lagging behind OECD Corporate Tax Trends 1 (2006)

handle is hein.taxfoundation/ffffxz0001 and id is 1 raw text is: r:OuUNNDAT10N. May 5, 2006 U.S. Lagging Behind OECD Corporate Tax Trends by Scott A. Hodge and Chris Atkins Fiscal Fact No. 55 Introduction A wave of corporate income tax reduction is sweeping through many countries in the Organization for Economic Cooperation and Development (OECD), but not the United States. The latest to consider corporate income tax rate reductions are Australia, I Germany,2 New Zealand,13 and Spain.4 Others, like Canada, are continuing to phase in corporate rate reductions in 2006 and beyond.5 This movement transcends political philosophy, with center-right (Australia), centrist ( Germany) and center-left (New Zealand, Spain) governments all considering corporate income tax rate cuts. As OECD countries continue to lower their corporate income taxes, they can expect to reap more foreign direct investment from the U.S. A recent study by Deveraux and Lockwood found that a 10 percent corporate rate reduction by an EU member-state can reap a 60 percent short-run increase in investment by U.S. multinational corporations.6 While foreign governments entice U.S. investors by lowering their corporate tax rates, the federal government in the U.S. stands pat with the same rate structure it has had since 1994. Indeed, one of the ironies of tax policy during the Bush presidency is that five years of tax-cutting legislation have left the corporate income tax rate unchanged. In the OECD, Only Japan Taxes Corporate Income at a Higher Tax Rate than U.S. The United States has the second-highest overall corporate income tax rate (39.3 percent combined federal and sub-federal) among all OECD countries (see Table 1). Japan (39.5 percent) and Germany (38.9 percent) have the first and third highest corporate income tax rates, respectively. The nation with the lowest corporate income tax rate in the OECD is Ireland (12.5 percent).

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most