In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
- The Tax Policy Blog
- U.S. Tax System Ranks 94th in the World
U.S. Tax System Ranks 94th in the World
The U.S. tax system ranks 94th out of 100 countries considered in a recently released study of international “tax attractiveness.”
“A large body of empirical literature confirms that taxation has an influence on the location, investment, and financing decisions of multinational enterprises,” the report by two German economists says.
To come to this conclusion, the analysis considered such factors as statutory tax rates, capital gains and dividend treatment, personal income tax rates, and more.
The report predominately focuses on business and capital – because businesses and capital have an easier time than individuals when it comes to relocating – but the operation of the U.S. tax code in a shrinking world has an increasing impact on individuals as well.
As with corporations, the United States tax code taxes the income of individuals, no matter where in the world they earn it. The only two other counties in the world that tax individuals this way are North Korea and Eritrea. Let me repeat that: North Korea and Eritrea.
In an increasingly globalized world, the attractiveness of a countries tax climate continues to become more important, as people, companies, and money find it easier to locate in the most attractive places.
Get Email Updates from the Tax Foundation
We will never sell or share your information with third parties.
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.