Saturday, March 19, 2011

U.S. Corporate Tax Rate Soon to Be #1 - Jobs Are Leaving USA

Democrats have never seen a tax they didn't like and they drool over taxing big bad corporations. But what are corporations. They are employers, they pay for a significant portion of medical care in the US, they provide the medical care, they provide investment growth for pensioners and those saving for a better life, they innovate and provide advancements in our standard of living, they put food on our tables, provide utilities to light, warm and cool our homes, they provide the majority of our goods and services.

Government is a sponge that stifles innovation and provides little in return.

Why is it that businesses relocate overseas? Because they can't compete on the world market. Other countries have recognized the need to reduce corporate taxes. The US has not. Why? Liberal Democrats, that is why.

American Businesses Falling Behind while Policy Stands Still

Washington, DC, March 11, 2011-The U.S. corporate tax rate will soon become the highest in the industrialized world, and is already in its 20th year of being above the average for similar economies, according to a new analysis by the Tax Foundation. As other nations enact reforms and rate cuts, the U.S. corporate rate will continue to stand out as a hindrance to economic growth and competitiveness unless lawmakers move to lower the tax burden for businesses.

The combined federal and state rate of 39.2 percent of corporate profits is exceeded only by Japan, whose rate stands at 39.5 percent. When Japan enacts planned cuts next month, however, the United States will have the highest rate of all of the economies in the Organization for Economic Cooperation and Development (OECD), the group of 34 advanced countries with economies most comparable to the U.S.

"Of course, OECD nations have not been the only countries reducing their corporate tax rates to remain competitive," said Tax Foundation president and study author Scott A. Hodge. "Since 2006, some 75 nations have cut their rates, many multiple times."

While many lower-tax nations have achieved their enviable business environments by lowering their rates in recent years, the U.S. is poised to achieve the dubious honor of being the highest-taxed through a lack of action. Between 2000 and 2010, nine countries cut their corporate tax rates by double-digit figures: Germany, Canada, Greece, Turkey, Poland, the Slovak Republic, Iceland, and Ireland. All nine fell considerably in the OECD rankings of high-tax countries.

Read full Tax Foundation article here.

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