"Trump’s policy rationale for reducing corporate taxes has also come under scrutiny from experts.
He claimed again at the event on Wednesday that the U.S. has the highest corporate tax rate in the world.
In fact, while the U.S. has a high official rate, corporations use deductions and other credits to pay considerably less than that ― in many cases enjoying a lighter burden than foreign competitors. In practice, the average U.S. corporation pays a tax rate of 18.6 percent, according to the Congressional Budget Office ― lower than the average in Argentina, Japan and the United Kingdom.
And it is not at all clear that there is a correlation between tax burdens and the willingness of corporations to invest in domestic growth. Between 2008 and 2016, median employment at 92 profitable U.S. corporations with tax rates under 20 percent ".
By Daniel Marans
He claimed again at the event on Wednesday that the U.S. has the highest corporate tax rate in the world.
In fact, while the U.S. has a high official rate, corporations use deductions and other credits to pay considerably less than that ― in many cases enjoying a lighter burden than foreign competitors. In practice, the average U.S. corporation pays a tax rate of 18.6 percent, according to the Congressional Budget Office ― lower than the average in Argentina, Japan and the United Kingdom.
And it is not at all clear that there is a correlation between tax burdens and the willingness of corporations to invest in domestic growth. Between 2008 and 2016, median employment at 92 profitable U.S. corporations with tax rates under 20 percent ".
By Daniel Marans
