Illinois continues to struggle with its budget. The state’s most recent stopgap budget expired on December 31, 2016. To perhaps break up the political logjam, Illinois senators of both political parties have begun...
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- 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.
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