Number One Corporate Tax Rate in the World
On April 1, 2012, the US took the top spot for having the highest corporate tax rate in the world after Japan lowered its rate to 38.01%. As it stands, the US has a corporate tax rate of 39.2% when you include the 35% federal rate, and an average of 4.2% between the states. The same rate as it was in 1986; the corporate taxrate is a series of complicated loopholes, tax credits and expiring tax incentives for certain companies.
Much of the talk about tax rates revolves around the idea that each contributor pays that rate. That is not the case. With Reuters reporting effective tax ranges from 2.7% for companies such as Verizon Comm. to 43.3% for Chevron Corp., its safe to say that the tax code is extremely complex. The major differences in rates depend upon the credits and “loopholes” that a company qualifies for.
The fact of the matter is, in the past 6 years, countries worldwide (with Japan being the latest) have lowered their corporate rates to attract businesses and strengthen their economies, while the US has not.
To learn more about corporate tax rates, check out our handy fact sheet about revenue and taxes here.