There are five basic legal forms of business structures found in the United States: C corporations, S corporations, sole proprietorships, partnerships, and Limited Liability Companies (LLCs). In order to understand...
- The Tax Policy Blog
- Every OECD Country Except the U.S., Chile, and Hungary Ha...
Every OECD Country Except the U.S., Chile, and Hungary Has Lowered Its Corporate Tax Rate Since 2000
The United States, Chile, and Hungary are the only three OECD countries that have not cut their corporate tax rate since 2000. Hungary and Chile, who had the two lowest rates in the OECD in 2000, have both increased their rates to 19 and 20 percent, respectively.
Germany has cut its rate the most in this timeframe, going from 52 percent in 2000 to 30.2 percent in 2014. Canada, Ireland, Poland, and the U.K., among other, have also made large cuts to their corporate tax rate. In all, 14 of the 34 OECD countries have lowered their corporate tax rates by at least 9 percentage points, with another 10 countires lowering their tax rates by at least 5 percentage points.
The rate cuts by 31 of the OECD countries have led to a drop in the average corporate tax rate across the OECD from 32.6 percent to 25.3 percent between 2000 and 2014. If we go back even further, OECD countries have cut their corporate tax rates continuously, with the average falling from 47.5 percent in 1981.
The U.S. has not changed its federal corporate tax rate since it increased the rate from 34 to 35 percent in 1994. Since 2000, the U.S. combined corporate tax rate (federal tax rate plus the average state corporate tax rate) has remain just above 39 percent.
Updated to include more information.
Subscribe to the Tax Foundation Newsletter
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.