On Sunday, America can claim bragging rights in its economic war with foreign countries especially China and Japan America's biggest competitors. It will have the highest jobs-killing corporate tax rate in the industrialized world.
America’s at 39.2 percent. When Japan officially slashes its rate to 36.8 percent Sunday, America will have the highest in the world.
Tax rate chart compiled by the Senate Republican Policy Committee
President Obama has proposed a rate of 28 percent, but Republicans charge that it comes with $350 billion in new, off-setting taxes. The GOP is pushing for a cut to 25 percent, but the election year is getting in the way of any deal.
The Business Roundtable has been pushing for a clean cut in corporate tax rates, claiming it would spur job growth and industrial reinvestment. They even cite a recent move by England to cut their tax rates from 28 percent to 22 percent, which officials called “an advertisement for investment and jobs in Britain.”
Tita Freeman of the Business Roundtable told Secrets, “Comprehensive tax reform is an imperative for the U.S. if we are going to remain a leader in the worldwide economy.”
Sen. John Barrasso, R-Wyo., chairman of the Senate Republican Policy Committee, has also been pressing for action on the tax rate. “Even Russia, at 20 percent, and China, at 25 percent, have lower rates than America does. The difference in tax rates means American companies are trying to compete with one hand tied behind their backs,” he said.
