U.S. SHOULD AX DESTRUCTIVE TAX
Corporate levy trashing returns
It's difficult to say definitively which tax is the most destructive. The corporate income tax is a leading candidate for causing higher prices to consumers, lower wages to workers and lower returns to investors. It misallocates capital, resulting in higher levels of unemployment and lower levels of economic growth and opportunity, and it taxes income that has already been taxed as least once before.
The 2012 annual rankings of "Corporate Tax Competitiveness" was published in Canada by University of Calgary and in the United States by the Cato Institute. In the study, authors Duanjie Chen and Jack Mintz of the school of public policy at the University of Calgary present new estimates of effective tax rates on corporate investment for 90 countries.
"These tax rates take into account statutory rates plus tax-base items that affect taxes paid on new investment, such as deductions for capital depreciation, inventory costs, and interest expenses." The United States is in the "uncompetitive position of having the highest statutory tax rate in the world, with a combined federal-state tax rate of about 40 percent." Only the economic basket cases of Argentina, Chad and Uzbekistan have slightly higher effective marginal tax rates. The United States...
