Highest Corp Tax Rate in the World

"What is that?" say you..."It is the primrose path!", say I.

Inquiring minds are reading this morning The Heritage Foundation’s column about the US ascending to the No. 1 spot in…Corporate tax rates:

Currently Japan holds the inauspicious distinction of having the highest corporate income tax rate in the world (39.5 percent). The United States is a close second, only a few tenths-of-percentage points behind.

Japan will soon fall from the top spot because it has finally recognized what the rest of the industrialized world realized over a decade ago: A low corporate income tax rate is vital for economic growth in the global marketplace. As such, Japan just announced it will reduce its corporate income tax rate by 5 percentage points down to around 35 percent. This remains far above the 25 percent average rate of other industrialized countries, but for them it is a start.

It wasn’t too long ago that things were quite different. In fact back in the 90’s the US wasn’t even close to the top spot:

The U.S. ended up at the top because it stood still while the rest of the world was cutting its rates. As the chart below shows, in 1990 the U.S. corporate tax rate was middle of the pack. In fact, it was lower than the global average. The years since have seen every other industrialized country aggressively lower its rate.

Now the liberal/progressive/leftists can get ready to yell insults as the companies leave to go offshore because it will just be too expensive to produce in the US. And don’t try to be one of those haters who will try to say that the leftist/progressives created this scenario.


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