News

    US Now Has Developed World's Highest Corporate Tax Rate

    The United States, with the world's-largest economy, now has claimed the dubious distinction of having the industrialized world's highest corporate tax rate.

    Japan dropped its corporate tax rate slightly on Sunday, to just more than 38 percent. That moved the United States to the top spot, with a 39.2 percent rate.

    Top 10 by Tax Rate:

    • United States - 39.2 percent
    • Japan - 38.01
    • France - 34.4
    • Belgium - 34
    • Germany - 30.2
    • Mexico - 30
    • Spain - 30
    • Australia - 30
    • Luxembourg - 28.8
    • Norway - 28
    • New Zealand -28

    The U.S. has maintained that rate for two decades and it is unlikely to be changed in the coming months.  

    The United States is in the early stages of the political campaign leading to the national presidential election in November. The country's politicians have offered widely varying tax proposals, but have shown little inclination to reach agreement before the election.  

    Despite the official corporate tax rate, many U.S. businesses pay a sharply diminished proportion of their profits in taxes, sometimes nothing. They are able to legally reduce their taxes by deducting business expenses, and U.S. tax laws exempt some types of income from taxation.

    One study, by the Organization for Economic Cooperation and Development [OECD], concluded American corporations paid an effective tax rate of about 24 percent. That was slightly less than the average for the 34-nation OECD coalition that promotes global economic advancement.

    The OECD said that Ireland has the lowest tax rate among its members, a 12.5 percent rate. The island nation has used the rate to boost its economy, but other European nations have said it gives Ireland an unfair advantage in attracting corporations to locate there. Four other countries - the Czech Republic, the Slovak Republic, Hungary and Poland - have a 19 percent corporate tax rate.

    U.S. President Barrack Obama, a Democrat, has called for corporate tax reform with a top rate of 28 percent.  he leading Republican seeking to oust him, one-time venture capitalist Mitt Romany, says he wants to cut the rate to 25 percent. Both say they want to overhaul the country's complex tax code, which would also affect the size of the tax bills that all American workers pay.

    Some information for this report was provided by Reuters.

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Joe Grimaldi
    April 03, 2012 10:54 AM
    The people ran the nation when over 50% of the currency circulated within. Jobs were more plentiful, Family own business kept the peoples economy flowing. If we need Corp, then a flexable tax should be used to maintain an American controlled financial institution within the Federal government of, by and for the people. This way if we need large corporations then we need a tax that should grow to balance how much brings financial balance to all others. No loopholes.

    by: william
    April 03, 2012 10:30 AM
    In this screwed up country we experience what is called a tax within a tax which means we need another revolution to get rid of this unfair government that is sucking everyone dry and that goes for federal state and county governments that have done nothing for me accept take and take more each time, Lets get rid of this government.

    by: Gary Poling
    April 03, 2012 8:12 AM
    ISN'T NORWAY & SWEDEN A SOCIALIST STATE?

    by: David @ Engage America
    April 02, 2012 5:52 PM
    Whether you believe that the corporate tax code is problematic because its rates are too high or you think its problematic because some businesses pay low effective rates doesn’t matter. What matters is that our corporate tax code is woefully out-of-date and must be overhauled.

    With Bowles-Simpson type reform Congress can simplify the tax code, improve fairness, and spur economic growth. http://bit.ly/noTDPF

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Wall Already Runs Along Parts of US-Mexico Borderi
    X
    July 22, 2016 12:30 AM
    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Poor Residents in Cleveland Not Feeling High Hopes of Republican Convention

    With the Republican Party's National Convention underway in Cleveland, Ohio, delegates and visitors are gathered in the host city's downtown - waiting to hear from the party's presidential candidate, Donald Trump. But a few kilometers from the convention's venue, Cleveland's poorest residents are not convinced Trump or his policies will make a difference in their lives. VOA's Ramon Taylor spoke with some of these residents as well as some of the Republican delegates and filed this report.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video With Yosemite as Backdrop, Obama Praises National Parks

    Last month, President Barack Obama and his family visited some of the most beautiful national parks in the U.S. Using the majestic backdrop of a towering waterfall in California's Yosemite National Park, Obama praised the national park system which celebrates its 100th anniversary this year. He talked about the importance of America’s “national treasures” and the need to protect them from climate change and other threats. VOA’s Julie Taboh reports.
    Video

    Video Counter-Islamic State Coalition Plots Next Steps

    As momentum shifts against Islamic State in Iraq, discussions are taking place about the next steps for driving the terrorist group from its final strongholds. Secretary of State John Kerry is hosting a counter-IS meeting at the State Department, a day after defense ministers from more than 30 countries reviewed and agreed upon a course of action. VOA Pentagon correspondent Carla Babb reports.
    Video

    Video Russia's Participation at Brazil Olympic Games Still In Question

    The International Olympic Committee has delayed a decision on whether to ban all Russian teams from competing in next month's Olympic Games in Brazil over allegations of an elaborate doping scheme. The World Anti-Doping Agency recently released an independent report alleging widespread doping by Russian athletes at the 2014 Winter Olympics in Sochi. So far, only Russian track and field athletes have been barred from the Summer Games in Brazil. VOA's Zlatica Hoke has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.
    Video

    Video Millennials Could Determine Who Wins Race to White House

    With only four months to go until Americans elect a new president, one group of voters is getting a lot more attention these days: those ages 18 to 35, a generation known as millennials. It’s a demographic that some analysts say could have the power to decide the 2016 election. But a lot depends on whether they actually turn out to vote. VOA’s Alexa Lamanna reports.
    Video

    Video Number of Syrian Refugees Arriving in US Jumps

    The United States is committed to resettling 85,000 refugees from around the world by October. Of that number, 10,000 will come from Syria and already some 4,000 Syrian refugees have arrived in the United States, many of them settling in the state of Illinois. As VOA’s Kane Farabaugh reports from Chicago, their arrival is not the end of a difficult journey to find peace and stability.
    Video

    Video Rio’s Trams Await Olympic Tourists

    Over the past century, many cities around the world replaced electric trams, prone to breakdowns and backups, with faster and more spacious buses. But for some reason restored antique trams are a huge tourist attraction. So it’s no wonder the authorities in Rio de Janeiro are busy restoring their city’s old tram line ahead of the Summer Olympic Games. VOA’ George Putic reports.

    Special Report

    Adrift The Invisible African Diaspora