U.S. Corporate Tax Competitiveness: A Senator Speaks Out

 
 
December 02, 2005

Oregon Senator Gordon Smith had some interesting comments this week on the U.S. corporate tax system. Speaking in Oregon on Wednesday, Senator Smith said that the U.S. needs to “re-think its taxation policy to remain competitive.”

As evidence of our lack of competitiveness, Senator Smith remarked that it costs $1 billion more to create a new wafer plant in the U.S. than in other world regions.

We recently released a special report comparing U.S. statutory and effective tax rates on corporate income. Our findings support Senator Smith’s assertions: the U.S. has the highest statutory corporate income tax rate (state and federal) in the OECD and the fourth highest effective tax rate on manufacturing and services.

Thus, it will not be politically easy to make our corporate tax system competitive. In order to restore the U.S. rate to the OECD average, Senator Smith would need to convince his congressional colleagues to reduce the federal corporate rate to 25 percent.

Buy this blogger a cup of coffee!

Sizes

Follow Us

About the Tax Policy Blog

Subscribe to Tax Foundation - Tax Foundation's Tax Policy Blog The Tax Policy Blog is the official weblog 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.

Monthly Archive

Privacy Policy