Author Topic: US Companies Pay the Highest Taxes in the World  (Read 3739 times)

Soul Crusher

  • Competitors
  • Getbig V
  • *****
  • Posts: 39256
  • Doesnt lie about lifting.
US Companies Pay the Highest Taxes in the World
« on: May 15, 2009, 05:06:22 AM »
US Companies Pay the Highest Taxes in the World

By Chris Banescu

It may come as a surprise that US companies pay the highest taxes in the world. Yes, you read that right. American businesses, large and small and across all industries pay from 35% to 41.6% of their income in combined state and federal taxes. The 41.6% maximum rate is scheduled to rise to 46.2% in 2010 when President Obama's promised tax increases are implemented. Compare that to socialist France where companies pay only 34.4% in taxes, to China where the rate is 25%, or Russia which levies a mere 24%. Corporations in Ireland, Europe's fastest growing economy for the last 18 years, pay just 12.5% in taxes.

Because of its dual taxation system, US businesses and individuals are required to pay both state and federal taxes on their income. When combined both these taxes range from a minimum of 35% in states like Nevada, South Dakota, and Wyoming that do not tax business income, to a maximum of 41.6% in Iowa, the state with the highest corporate tax rate of 12%.

Corporate Tax Rates, US vs. Other Free-Market Democracies

Last year the Tax Foundation, a nonpartisan educational organization with a solid reputation for independence and credibility, released a report that compared the tax rates of US corporations (across all 50 states) with 29 other countries that accept the principles of representative democracy and free-market economy (referred to as OCED countries, 30 total). Their study reveals the surprising finding that US companies are already at a significant competitive disadvantage in the world economy.

When compared to other OECD countries:


24 US states have a corporate tax rate higher than top-ranked Japan.
32 states have a corporate tax rate higher than third-ranked Germany.
46 states have a corporate tax rate higher than fourth-ranked Canada.
All 50 states have a corporate tax rate higher than fifth-ranked France.

(The Tax Foundation, 2008)


The full chart comparing the various US tax rates versus all the other OCED countries is available here.

Based on gross domestic product (GDP) data from 2008, Japan was ranked as the world's second largest economy, Germany was the fourth largest, France was the fifth largest, and Canada was the eleventh largest economy. (CIA World Factbook on Wikipedia)

Among other surprises, all 50 US states have a combined corporate tax rate higher than even Italy, Spain, United Kingdom, Greece, Sweden, Norway, Finland, Austria, Switzerland, Denmark, Hungary, New Zealand, Australia, Mexico, Turkey, and South Korea. All 50 US states have higher tax rates than 27 of the other OCED countries.

When compared with companies based in Ireland with a 12.5% flat tax rate, US corporations that face an average 39.3% rate are taxed at 3.1 times Ireland's rate. When contrasted with Iceland (18%), Turkey (20%), Poland (20%), and Switzerland (21.3%) US companies pay roughly twice the tax rates of their foreign counterparts.


Even our cousins across the pond levy lower rates. The United Kingdom requires 30% in taxes while the US companies pay on average 39.3%; that's a 31% premium.


US Corporate Tax Rates Highest Among The World's Largest 15 Economies


The comparison doesn't stop with the OCED countries. US corporations compete in a global marketplace where many other non-OCED countries also operate. When looking outside the 30 free-market democracies that the Tax Foundation examined, things are just as ominous for American firms.


Based on the GDP data from 2008, some of the world's largest economies are also providing a tax environment much friendlier to businesses than the United States.


Communist China, the world's third largest economy, lowered its top corporate tax rate to 25% as of January 1, 2008. The new tax rate replaced the previous one of 33%.


Russia, the world's eighth largest economy, currently taxes its corporations just 24%.


Brazil, the world's tenth largest economy, taxes its companies a maximum 34% rate.


India, the world's twelfth largest economy, taxes its corporations at a rate of 33%.


The United States is the world's largest economy. When compared to the next 14 countries that represent the world's largest economies by GDP as of 2008, from the second largest (Japan) to the fifteenth largest (South Korea), the emerging patterns are striking:


24 US states have higher corporate tax rates than all 14 other countries.
32 US states have higher corporate tax rates than 13 of the 14 countries.
46 US states have higher corporate tax rates than 12 of the 14 countries.
All 50 states have higher corporate tax rates than 11 of the 14 countries.
The full chart comparing all the US tax rates versus the world's largest economies is available here.


Raising Taxes Further on US Businesses


In the face of aggressive global competition and in spite of the considerable tax burdens they operate under, US businesses have somehow managed to prosper and grow and maintain America's prominence as the world's largest economy. Unfortunately, as the global competitive marketplace has expanded and countries like China, India, and Russia ramp up their economic might and move away from punitive corporate taxation, many of America's politicians are taking America in exactly the opposite direction.


In the midst of a serious global economic slowdown, with devastating reductions in corporate profits, accelerating business bankruptcies, and massive corporate layoffs, many state lawmakers are working to increase tax rates and fees on corporations and businesses. Concurrently, the White House and a majority of representatives in Congress are promising more tax increases and the elimination of many tax credits. Instead of helping US companies be more competitive and profitable and thereby allow the US economy to remain the job creating engine and economic driver of the world, our politicians are punishing and handicapping them. What could they be thinking?


2010 Corporate Tax Rate: US = 46.2%, China = 25%

Looking toward 2010, if President Obama and Congressional Democrats keep their promises, we will witness the once unthinkable: free-market America will tax its companies at 46.2%, almost double the rate of state-controlled China at 25%. As the world's largest economies continue to embrace lower corporate tax rates, a friendlier business environment, and greater prosperity for their people, the US will move backwards to the failed policies of the past, of punitive taxation and mediocre growth at best.

Chris Banescu blogs at chrisbanescu.com/blog.
42 Comments on "US Companies Pay the Highest Taxes in the World"

________________________ ________________________ ________________________ ___

I hope this puts the end to the lie told on this board that corporations get a free ride here.

BM OUT

  • Getbig V
  • *****
  • Posts: 8229
  • Getbig!
Re: US Companies Pay the Highest Taxes in the World
« Reply #1 on: May 15, 2009, 06:33:06 AM »
They should pay more!!!This way we can destroy all the jobs and let the government take care of everyone...Oh,wait a minute,Obama is well on his way of to doing that.

SAMSON123

  • Getbig V
  • *****
  • Posts: 8670
Re: US Companies Pay the Highest Taxes in the World
« Reply #2 on: May 15, 2009, 06:57:23 AM »
American companies also have MORE LOOPHOLES THAN A CIRCUS. Don't feel sorry for these companies, feel sorry for the workers who are being SHAT upon by these CEOs, Presidents of these corps which are walking away with millions and even BILLIONS each as the worker finds themselves unemployed. That is CAPITALISM for ya...
C

BM OUT

  • Getbig V
  • *****
  • Posts: 8229
  • Getbig!
Re: US Companies Pay the Highest Taxes in the World
« Reply #3 on: May 15, 2009, 07:42:13 AM »
American companies also have MORE LOOPHOLES THAN A CIRCUS. Don't feel sorry for these companies, feel sorry for the workers who are being SHAT upon by these CEOs, Presidents of these corps which are walking away with millions and even BILLIONS each as the worker finds themselves unemployed. That is CAPITALISM for ya...


Please name ONE ceo who has walked away with billions?The worker finds themselves unemployed because the company can go elsewhere and pay less taxes and not be restricted by silly environmental restrictions,and social security payments and payroll taxes etc etc.The government is 100% at fault for people loosing jobs,NOT the CEOs.Add in stupid ass union demands and we see the end of the textile industry,the steel indistry the auto industry and manufacturing.

SAMSON123

  • Getbig V
  • *****
  • Posts: 8670
Re: US Companies Pay the Highest Taxes in the World
« Reply #4 on: May 15, 2009, 08:09:40 AM »

Please name ONE ceo who has walked away with billions?The worker finds themselves unemployed because the company can go elsewhere and pay less taxes and not be restricted by silly environmental restrictions,and social security payments and payroll taxes etc etc.The government is 100% at fault for people loosing jobs,NOT the CEOs.Add in stupid ass union demands and we see the end of the textile industry,the steel indistry the auto industry and manufacturing.


Richard Cook of Disney walks away with 100 Million dollar retirement
Lee Raymond of Exxon walked away with over 400 MILLION dollars
CEO, William McGuire of Minnesota-based insurer UnitedHealth, who was awarded $1.6 billion in stock options

this is just a few of MANY leaving companies with 100 million to 1 BILLION dollars
C

BM OUT

  • Getbig V
  • *****
  • Posts: 8229
  • Getbig!
Re: US Companies Pay the Highest Taxes in the World
« Reply #5 on: May 15, 2009, 09:08:57 AM »

Richard Cook of Disney walks away with 100 Million dollar retirement
Lee Raymond of Exxon walked away with over 400 MILLION dollars
CEO, William McGuire of Minnesota-based insurer UnitedHealth, who was awarded $1.6 billion in stock options

this is just a few of MANY leaving companies with 100 million to 1 BILLION dollars

Its funny,these contracts are negotiated just as union contracts are.These guys are vastly overpaid[unless they can make the company turn a profit that merrits it]just as the unions VASTLY overpay employees to sit around and do nothing all day.Exxon got record profits,that guy desreved every dime he got.Im not sure what those other guys companies did under their watch,but if it was likewise,they deserved as well.

Arod makes 25 million a year,he deserves it.Garnet makes 20+ million a year,he deserves it.If your the best you deserve it.If your just a goof turning screws you get you get.

SAMSON123

  • Getbig V
  • *****
  • Posts: 8670
Re: US Companies Pay the Highest Taxes in the World
« Reply #6 on: May 15, 2009, 09:43:21 AM »
Its funny,these contracts are negotiated just as union contracts are.These guys are vastly overpaid[unless they can make the company turn a profit that merrits it]just as the unions VASTLY overpay employees to sit around and do nothing all day.Exxon got record profits,that guy desreved every dime he got.Im not sure what those other guys companies did under their watch,but if it was likewise,they deserved as well.

Arod makes 25 million a year,he deserves it.Garnet makes 20+ million a year,he deserves it.If your the best you deserve it.If your just a goof turning screws you get you get.

I now realize you like CROOKS running america...
C

BM OUT

  • Getbig V
  • *****
  • Posts: 8229
  • Getbig!
Re: US Companies Pay the Highest Taxes in the World
« Reply #7 on: May 15, 2009, 09:59:39 AM »
I now realize you like CROOKS running america...

If your asking do I trust CEOs over the filthy Obama government or corrupt unions,THEN YES I DO!!!!I wouldnt trust a gangster like Gettlfinger to watch my son for 2 minutes.

Hugo Chavez

  • Getbig V
  • *****
  • Posts: 31866
Re: US Companies Pay the Highest Taxes in the World
« Reply #8 on: May 15, 2009, 10:01:47 AM »



tu_holmes

  • Getbig V
  • *****
  • Posts: 15922
  • Robot
Re: US Companies Pay the Highest Taxes in the World
« Reply #9 on: May 15, 2009, 10:11:57 AM »
I now realize you like CROOKS running america...

It's just capitalism... The market will bear what it can bear.

If people didn't feel Arod was worth the money, then he wouldn't get it... Is it a little different in regards to CEOs, sure... it is... but if the Board of directors didn't feel that person X was worth that kind of money, then they wouldn't sing a contract for that.

Apparently, in some ways, the boards believe they are worth it.

To answer an earlier poster...

Citigroup (NYSE: C) paid CEO Vikram Pandit $38.2 million while its stock fell 78% destroying $124 billion in stock market value

Motorola (NYSE: MOT) CEO Sanjay Jha made $104 million while overseeing a 75% stock plunge which wiped out $27.9 billion in stock market value

American Express (NYSE: AXP) CEO Ken Chenault made $28.6 million while his company's stock fell 65% -- slashing $38.5 billion in shareholder value

Ebay (NASDAQ: EBAY) CEO John Donahoe got a cool $24.4 million as eBay stock lost 60% of its value costing shareholders $26 billion


Those guys got paid even tho their companies lost tons of cash... That's not really pay for performance.

shootfighter1

  • Competitors
  • Getbig V
  • *****
  • Posts: 5681
  • Competitor- NABBA Nationals Overall Champ
Re: US Companies Pay the Highest Taxes in the World
« Reply #10 on: May 15, 2009, 10:15:18 AM »
Bullshit, not all companies have so many loopholes.  Samson, you have no idea what the small business world is like.  33386 and I are small business owners.  Small business get screwed over in taxation when they follow the rules.  The rate of corporate taxation is way too high and Obama is not helping in any way (and he could have reduced the corporate tax rate in the stimulus plan...but refused to!...that pissed me off).

The #s don't lie.  American corporations are riddled with taxes and small and medium sized businesses get hit hard and there are no exceptions, great loopholes or subsidies.

We have to stop giving subsidies for large companies!  That I agree with...ie, big oil does not need subsidies from the government.

BM OUT

  • Getbig V
  • *****
  • Posts: 8229
  • Getbig!
Re: US Companies Pay the Highest Taxes in the World
« Reply #11 on: May 15, 2009, 10:26:13 AM »




I couldnt get it to play.However,I will post a thought anyway.CEOs and companies are the ones that hire and provide the jobs.PERIOD!!!!Unions steal the peoples money and give it to filthy scumbags like Obama.Id rather have my money going into the pocket of a corrupt CEO, that is providing me a job,then that anti-white racist we have in the white house who is  purposely trying to take over EVERY aspect of our lives including how much money we can make!

Deicide

  • Getbig V
  • *****
  • Posts: 22921
  • Reapers...
Re: US Companies Pay the Highest Taxes in the World
« Reply #12 on: May 15, 2009, 10:57:56 AM »
It's just capitalism... The market will bear what it can bear.

If people didn't feel Arod was worth the money, then he wouldn't get it... Is it a little different in regards to CEOs, sure... it is... but if the Board of directors didn't feel that person X was worth that kind of money, then they wouldn't sing a contract for that.

Apparently, in some ways, the boards believe they are worth it.

To answer an earlier poster...

Citigroup (NYSE: C) paid CEO Vikram Pandit $38.2 million while its stock fell 78% destroying $124 billion in stock market value

Motorola (NYSE: MOT) CEO Sanjay Jha made $104 million while overseeing a 75% stock plunge which wiped out $27.9 billion in stock market value

American Express (NYSE: AXP) CEO Ken Chenault made $28.6 million while his company's stock fell 65% -- slashing $38.5 billion in shareholder value

Ebay (NASDAQ: EBAY) CEO John Donahoe got a cool $24.4 million as eBay stock lost 60% of its value costing shareholders $26 billion


Those guys got paid even tho their companies lost tons of cash... That's not really pay for performance.

I hate the State.

Soul Crusher

  • Competitors
  • Getbig V
  • *****
  • Posts: 39256
  • Doesnt lie about lifting.
Re: US Companies Pay the Highest Taxes in the World
« Reply #13 on: May 15, 2009, 12:55:18 PM »
I have no problem with what ARod makes.   $$$$ wise, he is well worth it.  He puts butts in the seats, sells jerseys, shirts, etc, and allows the team to win games they otherwise would not win.

If you look at the attendance before and after Arod, the Yankees sell a ton more tickets with Arod on the team.

SAMSON123

  • Getbig V
  • *****
  • Posts: 8670
Re: US Companies Pay the Highest Taxes in the World
« Reply #14 on: May 15, 2009, 02:52:52 PM »
Bullshit, not all companies have so many loopholes.  Samson, you have no idea what the small business world is like.  33386 and I are small business owners.  Small business get screwed over in taxation when they follow the rules.  The rate of corporate taxation is way too high and Obama is not helping in any way (and he could have reduced the corporate tax rate in the stimulus plan...but refused to!...that pissed me off).

The #s don't lie.  American corporations are riddled with taxes and small and medium sized businesses get hit hard and there are no exceptions, great loopholes or subsidies.

We have to stop giving subsidies for large companies!  That I agree with...ie, big oil does not need subsidies from the government.

I am not talking about the small businesses shootfighter...that should be obvious. I am talking about the mega businesses like GE, GM, FORD, CHRYSLER, DUPONT, WESTINGHOUSE, ITT, ATT, etc etc these guys not only have more loopholes than a circus, they also receive CORPORATE WELFARE that is astounding. We're talking 250 BILLION per year just handed out like condoms at a sex party. Ironically just like now..these businesses are getting money not needed(bailout) for corruption and massive waste, these same companies get money every year from the US government though it is not needed. Now the homeowners losing their homes can't get a dime...as a matter of fact they are vilified, demonized for even asking for help and if they are unfortunate enough to the point where they require unemployment or welfare or medicaid they are made to seem like a parasites. At least a person like this could save their home and continue to eat as opposed to the corporate execs who will waste the money on airplanes, new limos, new homes etc etfc. America and capitalism is SHAMEFUL
C

Soul Crusher

  • Competitors
  • Getbig V
  • *****
  • Posts: 39256
  • Doesnt lie about lifting.
Re: US Companies Pay the Highest Taxes in the World
« Reply #15 on: May 15, 2009, 07:35:07 PM »
If the US did not give so many bailouts and subsidies, companies that spend recklessly would be allowed to go out of business.

Busted

  • Getbig IV
  • ****
  • Posts: 2178
  • PROUD MEMBER OF TEAM MOWER
Re: US Companies Pay the Highest Taxes in the World
« Reply #16 on: May 15, 2009, 09:00:59 PM »
US companies pay the highest taxes BEFORE write offs and loop holes... After all is said and done, we pay some of the least... id guarantee you I make tripple what you do 33333 and I bet I pay less taxes than you why? Becasue EVERYTHING I do is a write off... Payroll, Insurance, Donations, PAYING your ACCOUNTANT, Company vehicles, gas, mileage, insurances,travel, hotel rooms, cell phones, etc... all 100 percent write offs...

Warren Buffett pays lower taxes than his Secretary... he proved it...

Benny B

  • Time Out
  • Getbig V
  • *
  • Posts: 12407
  • Ron = 'Princess L' & many other gimmicks - FACT!
Re: US Companies Pay the Highest Taxes in the World
« Reply #17 on: May 15, 2009, 10:37:30 PM »
If the US did not give so many bailouts and subsidies, companies that spend recklessly would be allowed to go out of business.

"Oh, Archie!"  ::)
!

24KT

  • Getbig V
  • *****
  • Posts: 24455
  • Gold Savings Account Rep +1 (310) 409-2244
Re: US Companies Pay the Highest Taxes in the World
« Reply #18 on: May 15, 2009, 11:15:34 PM »
It's just capitalism... The market will bear what it can bear.

And when the market can't bear it any longer, ...it collapses, allowing the CEO's to walk away with MILLIONS,
...while the common man gets a pink slip, loses his home, and joins the rank of the homeless in tent cities.  ;D

w

Slapper

  • Getbig V
  • *****
  • Posts: 4293
  • Vincit qui se vincit
Re: US Companies Pay the Highest Taxes in the World
« Reply #19 on: May 16, 2009, 05:14:43 AM »
If the US did not give so many bailouts and subsidies, companies that spend recklessly would be allowed to go out of business.

Better yet, why don't we put the ball and chains on the people that lose their jobs and force them to do work for free?

24KT

  • Getbig V
  • *****
  • Posts: 24455
  • Gold Savings Account Rep +1 (310) 409-2244
Re: US Companies Pay the Highest Taxes in the World
« Reply #20 on: May 16, 2009, 05:22:36 AM »
Better yet, why don't we put the ball and chains on the people that lose their jobs and force them to do work for free?

GM is trying to negotiate such a deal with the UAW. I'll keep you posted on how it goes over.  :)
w

Soul Crusher

  • Competitors
  • Getbig V
  • *****
  • Posts: 39256
  • Doesnt lie about lifting.
Re: US Companies Pay the Highest Taxes in the World
« Reply #21 on: May 16, 2009, 05:26:58 AM »
GM is trying to negotiate such a deal with the UAW. I'll keep you posted on how it goes over.  :)

GM should be allowed to go out of business.  I for one, will never buy a gm car.  They plan to import cars from china using us tax dollars????

No thanks. 

24KT

  • Getbig V
  • *****
  • Posts: 24455
  • Gold Savings Account Rep +1 (310) 409-2244
Re: US Companies Pay the Highest Taxes in the World
« Reply #22 on: May 16, 2009, 05:29:34 AM »
GM should be allowed to go out of business.  I for one, will never buy a gm car.  They plan to import cars from china using us tax dollars????

No thanks. 

What do you have against tin cans that rust after the first rainfall? ???
w

Soul Crusher

  • Competitors
  • Getbig V
  • *****
  • Posts: 39256
  • Doesnt lie about lifting.
Re: US Companies Pay the Highest Taxes in the World
« Reply #23 on: May 16, 2009, 05:34:02 AM »
What do you have against tin cans that rust after the first rainfall? ???

GM cars are grossly overpriced because the cost structure of gm has to account for inflated salaries, retiree pensions and health, and union work rules that stifle productivty.

I currently have a Ford Explorer and BMW.  The quality between the two is not even close.  American cars are just not worth the $$$$$ in relation to their competitors.

24KT

  • Getbig V
  • *****
  • Posts: 24455
  • Gold Savings Account Rep +1 (310) 409-2244
Re: US Companies Pay the Highest Taxes in the World
« Reply #24 on: May 16, 2009, 05:42:22 AM »
GM cars are grossly overpriced because the cost structure of gm has to account for inflated salaries, retiree pensions and health, and union work rules that stifle productivty.

I currently have a Ford Explorer and BMW.  The quality between the two is not even close.  American cars are just not worth the $$$$$ in relation to their competitors.


It has nothing to do with productivity, or pension and health benefits, or union salaries. All carmakers are unionized
What it has to do with is the fact that GM makes a shitty product nobody wants to buy.
If they produced vehicles consumers wanted to buy, they wouldn't have the financial problems they currently do.
w