TRUMP WANTS TO SAVE AMERICAN BUSINESS – DOES CONGRESS?
How much should corporations pay in taxes? The table shows average corporate tax rates by country. You will notice that the United States has by far the highest tax rate.
The U.S. corporate income tax rate is comprised of a federal rate of 35 percent and an average of 5 percent for the states, giving an average 40 percent rate.
The corporate tax has long been recognized by economists as one of the worst taxes. Despite all of the talk about “greedy corporations,” corporations are merely a way of doing business.
The corporation does not “pay” the tax, only individuals pay taxes — so the corporate tax is passed along to consumers in terms of higher prices, to the stockholders in terms of lower dividends and capital gains, and to the workers in terms of lower wages.
President Trump has presented several very sound principles for tax reform. Yet, without the details being presented, the tax reform effort is already being attacked by the Democrat leadership. Reasonable people can differ about how much to reduce the corporate tax rate, but to claim that any corporate tax rate cut is a giveaway to the rich is merely an appeal to ignorance.












