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By Stephen Pederson

What Taxes Do Corporations Pay?

Around the world corporate tax rates vary widely.

Due to complexity, it is almost impossible to fairly compare taxes rates from different jurisdictions.  Allowable write-offs, over-lapping state taxes, differing entitlement benefits and other collarary criteria make it difficult to compare apples to apples.  However, not one to shy away from the difficult tasks, the Tax Foundation ranked developed and emerging nations in terms of their corporate tax rates.

Based on 2010 data, the top three highest corporate tax rates in the world belong to:

  1. Japan – 39.54%
  2. United States – 39.20%
  3. France – 34.43%

Included in the Tax Foundation’s analysis is a surprising finding that compares the average US corporate tax rates with all other non-US OECD countries.

2011 marks the 20th year in which the U.S. statutory tax rate has been above the simple average of non-U.S. countries in the Organization for Economic Cooperation and Development (OECD).

One of the most striking findings of the study included this finding:

After the scheduled rate cuts in Japan and Great Britain take effect, the simple average of non-U.S. OECD nations will drop to about 25 percent and the weighted average will hit 29 percent. This will leave the U.S. rate a full 10 percentage points higher than the weighted average of our major economic competitors.

For more information on global corporate tax rates click on the link below.

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