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1 Jack Mintz & Duanjie Chen, The U.S. Corporate Effective Tax Rate: Myth and the Fact 1 (2014)

handle is hein.taxfoundation/taxfaaac0001 and id is 1 raw text is: TA r
FOUNDATION
Feb. 2014
No. 214

The U.S. Corporate Effective
Tax Rate: Myth and the Fact
By Jack Mintz
Director and Palmer Chair in School of Public Policy, University of Calgary
& Duanjie Chen
Research Fellow, School of Public Policy, University of Calgary
Key Findings
* The marginal effective tax rate (METR) on corporate investment
(i.e., the tax impact on capital investment as a portion of the cost
of capital) is 35.3 percent in the U.S.-higher than in any other
developed country.
* The U.S. has maintained the highest METR in the OECD since
2007, when Canada's multiyear program of corporate tax reform
brought its METR below the G-7 average.
* Nonetheless, the White House and Treasury Department
continue to assert that the U.S. has a lower METR than Canada
by failing to properly account for sales and property taxes.
* The U.S. METR varies by industry, from 26.7 percent for
transportation to 39.3 percent for communications.
* The U.S. average effective tax rate on corporations (AETR) is
irregular from year to year due to the complexity and instability
of the corporate tax code.
* Excessively high U.S. corporate tax rates have shrunk the U.S.
corporate sector and reduced corporate tax revenues.

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