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View Full Version : U.S to have highest corporate TAX rate ....


newtothegame
03-17-2012, 12:32 AM
Starting Next Month, the U.S. Will Have the Highest Corporate Tax Rate in the World


Posted on March 16, 2012 at 4:00pm
Here are a few snipets I found interesting from the story....

"As Japanese politicians found themselves staring down an increasingly burdensome deficit and an aging population, they came up with an idea: Cut the corporate profits tax to boost economic activity and generate higher revenues."

"Japan is the latest country to act on the reality that high corporate taxes create “economic distortions.”

"Still, for reasons unknown, the last two decades have seen nothing but inaction on the part of U.S. politicians even as the rest of the world has cut its corporate tax rates."

http://www.theblaze.com/stories/starting-next-month-the-u-s-will-have-the-highest-corporate-tax-rate-in-the-world/

ElKabong
03-17-2012, 01:10 AM
Banner raised on the White House lawn....MISSION ACCOMPLISHED

Robert Goren
03-17-2012, 05:55 AM
The article failed mention what is the effective US corporate rate and how it compares to other country's effective corporate tax rates. I would be very interested in a study done on that.

mostpost
03-17-2012, 12:42 PM
The article failed mention what is the effective US corporate rate and how it compares to other country's effective corporate tax rates. I would be very interested in a study done on that.
Here is a website you might want to check out.
http://www.worldwide-tax.com/
Scroll down to "Tax rates around the world" and click on the desired country.

A comparison of the United States and Japan shows us that things are not exactly as portrayed in the article. Yes Japan has a top corporate tax rate of 30% while that of the United States is 35%. But Japan's rate starts at about $95,000 Whereas the US rate begins at $18,333,000. (There are exceptions and there are "doughnut holes" where higher rates are paid in the USA.)

More importantly, the corporate tax is not the only tax paid by corporations in Japan. There is also the enterprise tax. That tax is 2.7% for corporations with income under $95,000 and 5.3% for corporation with income over $95,000.
In other words, if you are a corporation earning over $95,000 in Japan, you pay corporate taxes at the rate of 35.3%.

But there is more. There is also what is called an inhabitants tax which is levied against corporation. There was little information in the article on how this tax is calculated, but the effect was to raise total corporate taxes in Japan as high as 41% to 42%.

None of this takes into account tax loopholes and the like. I am sure they have them just like we do.

JustRalph
03-17-2012, 03:09 PM
Banner raised on the White House lawn....MISSION ACCOMPLISHED

exactly!