U.S. Has Among Highest Corporate Tax Rates - Fiscal Policy Review

  November 25, 2015

Low overseas tax rates for large publicly traded U.S. companies seem unsustainable and could eventually pose a problem for corporate earnings, primarily affecting multinationals.

For years, the United States has had and continues to maintain one of the highest corporate tax rates of any country worldwide at 40%. The average corporate rate globally is just over 23%, almost half of U.S. rates.

Some countries maintain low rates or no corporate rate at all, such as Cayman Islands and Bermuda, in order to encourage companies to invest and hire within their countries. Some believe that if U.S. corporate tax rates drop, it might discourage U.S. companies from seeking tax havens overseas. The OECD’s report raises a concern that some European countries are being used as tax havens, but with little or no benefits achieved by the underlying workforce or economy.

Source: OECD

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