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.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    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 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 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.

    Special Report

    Adrift The Invisible African Diaspora