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1 Taylor LaJoie & Elke Asen, Double Taxation of Corporate Income in the United States and the OECD 1 (2021)

handle is hein.taxfoundation/dtaxc0001 and id is 1 raw text is: 


                                Double Taxation of Corporate

  TX                            Income in the United States and the

                               OECD

FI  SCAL                       Taylor  LaJoie    Elke Asen
FACT                           Policy Analyst   Policy Analyst
No.  740
Jan. 2021
                               Key Findings

                                     The Tax  Cuts and  Jobs Act lowered   the top integrated tax rate on  corporate
                                      income  distributed as dividends  from  56.33  percent in 2017  to 47.47 percent
                                      in 2020; the OECD average is 41.6 percent.

                                     Joe Biden's proposal  to increase the corporate  income   tax rate and to tax
                                      long-term  capital gains and qualified dividends  at ordinary income  rates
                                      would  increase the top  integrated tax rate on distributed dividends  to 62.73
                                      percent, highest  in the OECD.

                                     Income  earned  in the U.S. through  a pass-through  business  is taxed at an
                                      average  top combined   statutory rate of 45.9 percent.

                                     On  average, OECD   countries  tax corporate  income  distributed as dividends
                                      at 41.6 percent and  capital gains derived from  corporate  income,  at 37.9
                                      percent.

                                     Double  taxation  of corporate income   can lead to such economic   distortions
                                      as reduced  savings and  investment,  a bias towards  certain business forms,
                                      and debt  financing over equity  financing.

                                     Several OECD   countries  have  integrated corporate  and  individual tax codes
                                      to eliminate or reduce  the negative effects  of double taxation  on corporate
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202.464.6200                   1   In some countries, the capital gains tax rate varies by type of asset sold. The capital gains tax rate used in this report is the
                                   rate that applies to the sale of listed shares after an extended period of time. While the integrated tax rate on dividends
taxfoundation.org                  captures subcentral taxes, this may not be the case for all integrated tax rates on capital gains due to data availability. The U.S.
                                   integrated tax rate on capital gains captures both federal and state taxes.

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