Home | Tax Blog | Tax Evaluation | Resources | Common Tax Questions | Back Taxes | Contact Us

Corporate Tax Rate Debate Continues

September 19th

As the country continues to battle with a rising budget deficit and the 2012 elections approach, taxes are on everyone’s mind. All parties continue to weigh in with opinions on whether taxes ought to be cut or raised, simplifying the tax code, and dealing with tax debt among an increasingly large portion of the US population. With this in mind, the debate rages on whether US companies pay too much in federal taxes.

While all sides seem to concur that amending the tax code is the most certain route to fixing our economy, there is little consensus as to how this ought to be achieved. Many Democrats favor continuation, or even increases, of tax levies against US corporations. Meanwhile, most Republicans support cutting corporate taxes in order to increase foreign investment and bring more jobs into the country.

Highest Corporate Tax Rates in the World?

Critics of plans to raise taxes often mention that, at present, US publicly traded companies pay more than almost any other country in the world. While US corporations generally face a maximum 35 percent statutory tax rate, most of Western Europe, as well as China and Brazil, pay 25 percent or less. Russia, meanwhile, contributes 20 percent tax, and Indian businesses pay a 33.9 percent statutory tax rate. Though these statistics seem to confirm suspicions that the US tax on business is too high, there are other issues to consider.

The effective tax rate paid by companies is usually quite different from the statutory rate. While a company may be facing high statutory rates, tax deductions and credits for items such as research and development can mean that the effective rate is much lower.

In actuality, the statutory tax rate does not reflect who actually bears the burden of high taxes. It is not the corporations that suffer the most; instead, it is the shareholders who suffer by lower dividends, employees who receive lower salaries, and consumers who bear the burden by paying higher prices.


Subscribe Now

Follow on FaceBook
News & Events
Monday, August 01, 2011

We are excited to launch our new site LeeTaxHelp.com.
Monday, September 05, 2011

If you think you might be need the advice of a Dallas Bankruptcy Attorney you can view on sister site at http://leebankruptcy.com
Back Taxes (5) General Tax Information (65) News (39) Payroll Taxes (5) Tax audit (10) Tax Debts (3) Tax deductions (16) Tax Fraud (4) Tax Laws (14) Tax Liens (10) Tax payment plans (14) Tax programs (21) Tax Scams (6) Uncategorized (2)
Recent Posts
Advantages of Using a Tax Debt Lawyer
Tax Debt Relief In 2014
Tax Debt Installment Agreements
Understanding the Five Tax Debt Strategies
Back Taxes: What You Can Do
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011