Home > CBO, Clinton, Corporate tax rate, Economics, OECD, Politico, Republicon, Telecommunications Act, Uncategorized, US Budget > America Has The Highest Corporate Rates In The World! REALLY!!??

America Has The Highest Corporate Rates In The World! REALLY!!??


2012-12-04_1357

Tax to GDP Ratios in the OECD area, 1975 to 2009
CLICK TO ENLARGE!!

In the vast caverns of the Republicon/corporate political ecosystem one will hear that constant bombardment of “America has the highest corporate rates in the world” which is true if you only look at the surface numbers. Surface facts are often used to miss-lead the American populace into subscribing to policies and doctrines that only benefit the 1 to 5 percent of America. Conserva-Dems, Republicons, and the corporate trolls find this lie particularly pleasing to utter.

With all due respect, Republicons are masterful at getting around 45% of Americans to believe things that are just factually untrue and economic disasters except when used as a form of upward wealth extraction. Some of the near and dear ones to the wallets of the financially elite are “Death tax“, “death panels“, “job creators“, “tax cuts equates to job growth“, “war on Christmas“, “welfare queens“, “makers and takers“, and “freedom (in terms of Healthcare and social Security)”. The bevies of deceitful terms that are in common use today by those calling themselves “conservatives” are endless; see Thom Hartmann’s book “Cracking The Code” for further enlightenment. These phrases may come off the tongue smoothly, but what do they mean by them and what has been the proven result of following this ideology?  As the saying goes “figures don’t lie, but any liar can figure”! Resisting the urge to go into a rant about all of those misleading words; they are another subject, for another blog, on another day!

Republicons and corporate toadies will not miss an opportunity to utter “the US has the highest tax rates among OECD (Organisation for Economic Cooperation and Development) countries in the world”, but this political talking point is an easily dis-proven phrase. Now the mere utterance of that phrase is not untrue, but it conveniently fails to disclose the truth behind the phrase. While America’s corporate tax rate is the highest among the top developed countries in terms of the number, maxing out at 35%. America has the lowest actual paid rate in the developed world, as a percentage of Gross Domestic Product (GDP) America is dwarfed by other countries. This simply means that America collects the least amount of tax dollars than all but 2 of the OECD countries.

There was a time when this kind of lie (that’s right I called it a lie) would have been condemned by all members of the press and politicos, but with the passing of the Clinton “Telecommunications Act” of 1996, facts have escaped the mainstream media.

As of 2009, only Iceland has a lower corporate tax rate, as a percentage of GDP, than America. America look at the facts! The US collection of federal, state, and local taxes from corporations are around 22% of GDP which ranks the United State at 26th among the 28 OECD countries in terms of revenue. Chile and Mexico are the only other developed countries that rank lower than the “good old” USA; Chile is at 18% and Mexico is at 17%. The questions of taxation, on the corporate level, is unquestionable about the fact that we now collect less in corporate taxes than at any point in American history. Corporate income tax collections have continually declined along with the rate despite the fact that there profits have never been as high and despite the fact that America is in clear need of increased revenue to match the financial need of services.

The Organization for Economic Cooperation and Development (OECD), the Congressional Budget Office (CBO), and the Census Bureau have confirmed that the United States corporate tax collection is already one the lowest in the world and yet some will continue to decry that we need to lower our rates in order to compete. This is one of the worst hidden fallacies in the political world and should be confronted with the real facts every time a politico utters it from their tight-grinned lying lips.

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  1. December 4, 2012 at 9:24 pm

    Very well said and very well done!

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