The United States’ 39% marginal corporate tax rate (35% federal and 4% average state and local) is the third highest in the world. It is the highest of the 34 industrialized nation members of the OECD – and it compares poorly with Europe’s average tax rate of 24%.
Because of loopholes, deductions, loss carry-forwards, etc., few, if any, companies pay the full 39% rate. Nevertheless, our statutory rate is higher than almost anywhere in the world.
President Trump has proposed lowering the Corporate Tax Rate from 35% to 20%. That’s a good idea – but it doesn’t go far enough. The Corporate Tax Rate should really be lowered to zero.
If this sounds a bit off, stay with me – I promise it will make more sense.Continue Reading