Corporate Tax Video: We’re #1!
Tax Foundation Video
“We’re Number One!”
March 21, 2012
[Open with audio of chanting: “We’re No. 1, We’re No. 1…”]
As Americans, we love to be number 1. No matter what the challenge, we strive to be the best in everything.
And we’re number 1 in a lot of things. We have the largest economy. The most Olympic medals. The most educated adults. We even have the largest ball of twine.
But there are some records we’re not so proud of: The most crime. The most obesity. The largest ball of twine.
And, now, we have the highest corporate tax rate of any industrialized nation. Our rate is 35 percent – nearly 40 percent when you add in state taxes.
While the average corporate tax rate of other industrialized nations is only 25 percent. And our largest trading partners Canada, Great Britain, and Japan all cut their corporate tax rates this year to be more competitive than the US.
So while it might hurt our national pride, a good first step toward regaining America’s competitive edge is to be…well…average.
Sure, it would be nice to have the lowest corporate tax rate, like Ireland’s 12 and a half percent, or even Poland’s 19 percent flat tax.
But, if we were to just cut our corporate tax rate to match the global average of 25 percent, the American economy would instantly attract more investment, which would lead to higher economic growth and more jobs.
Economists estimate that cutting our corporate tax rate to twenty-five percent could mean a faster-growing economy, less unemployment, and more high quality jobs over the next decade.
In addition to jobs, a growing economy also produces more tax revenues, and that means a lower deficit and national debt. That sounds like a win-win for everyone.
So while America’s can always be proud to have the world’s largest crayon or the world’s largest catsup bottle, there is no shame in having an average corporate tax rate – consider it a first step toward a more prosperous economy.
For more information, go to www.TaxFoundation.org