New Podcast: What Corporations Really Pay in Taxes
September 9, 2011
This week the Tax Foundation’s own Will McBride is the star of the Tax Policy Podcast, in which he discusses the myth of corporate tax-dodging and his new study of corporate tax data from the Internal Revenue Service.
Will in particular takes on the notion that U.S. companies are routinely whittling their effective tax rates down to almost nothing by taking advantage of deductions, credits and elaborate accounting shenanigans:
The overall effective corporate income tax rate on the worldwide income of U.S. corporations, inclusive of foreign taxes paid on foreign income, is between 32.1 and 33 percent, which is close to the statutory rate of 35 percent. U.S. industries with little to no foreign earnings are taxed by the IRS at a rate that is close to 35 percent. None of this counts U.S. state and local corporate taxes, which add about 4 percent, for a total effective corporate tax rate of about 37 percent on U.S. companies.