The myth of high corporate taxes

 The business press is chock full of verbiage from everyone from Fortune 500 executives to business groups that argue that the U.S. is placed  at a competitive disadvantage by its 35 percent statutory tax rate, which is the highest in the world.   But as I noted in CBS Moneywatch,  University of Southern California law professor Edward Kleinbard demolished this widely held view.   

From the article:

“It is true of course that the federal corporate tax rate — nominally, 35 percent — is too high relative to world norms, and that the ersatz territorial system requires firms to waste money in tax planning and structuring, but effective marginal tax rates and overall effective tax rates reach the level of the U.S. headline rate only when firms studiously ignore the feast of tax planning opportunities laid out before them on the groaning board of corporate tax expenditures,” he wrote in the 32-page paper.

 

 

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