How Our High Corporate Tax Rate Hurts Our Economy

[Revmitchell]

The U.S. corporate tax rate is the highest in the developed world—by a long shot.

At 39.1 percent (35 percent federal rate plus the average of state rates), it remains substantially higher than the Organization for Economic Co-operation and Development average of 25 percent.

Combined with the “worldwide” tax system employed by the U.S. (where companies’ overseas income is taxed when they return it to this country) the excessively high corporate tax rate poses serious problems for the American economy.


The high rate makes America an uncompetitive environment for investment by both U.S. and foreign businesses. It makes fewer investments profitable to undertake in the U.S., meaning that businesses make fewer of them. Less investment causes lower job creation and slower wage growth.

The high rate also encourages U.S. businesses to escape the rate altogether. They can do that by inverting, as many did late last year. Inversions occur when a U.S. business merges with a foreign company and the new business moves its headquarters abroad. U.S. businesses can also sell themselves outright to foreign businesses.


http://dailysignal.com/2015/04/08/h...ok&utm_medium=social&utm_campaign=thffacebook

 

[church mouse guy]

People don't seem to believe the devastating impact that high taxes have on business. There are very few strong sectors in the economy at this time.

Also, right now the economy is in a slump because people are paying the high taxes associated with Obamacare. The free market actually was much cheaper that Obamacare but the Democrats cannot understand that.

 

[Crabtownboy]

Our economy is doing very well just now thank you. Finally dug out from the GOP disaster in the first decade of this century.

 

[carpro]

Our economy is doing very well just now thank you. Finally dug out from the GOP disaster in the first decade of this century.

:laugh: Have another drink of kool-aide.

 

[targus]

Our economy is doing very well just now thank you. Finally dug out from the GOP disaster in the first decade of this century.

Why do you suppose it is that wages are flat if the economy is good?

 

[Crabtownboy]

Note the recovery from the Bush era disaster.

 

[targus]

Right... the whole democrat subprime mortgage meltdown had nothing to do with it.

 

[Sapper Woody]

Note the recovery from the Bush era disaster.

Note that, according to your chart, it grew faster under Bush than Obama.

 

[Revmitchell]

Our economy is doing very well just now thank you. Finally dug out from the GOP disaster in the first decade of this century.

 

[Revmitchell]

Right... the whole democrat subprime mortgage meltdown had nothing to do with it.

It had everything to do with it.