Economic Program | Digest
Q&A on Corporate Tax Reform
U.S.A. is Number 1.
But, in the case of corporate taxes, that’s not a good thing. In the last decade, America’s global competitors have gotten serious about corporate tax reform, driving down their rates to attract production and jobs. But the U.S. code remains stuck—our 35% federal corporate tax rate is now the highest in the world.
The outdated rate is just the first of our problems. A litany of corporate tax expenditures means that some companies and sectors pay much higher effective tax rates than others. Those expenditures limit government revenue, and they’re expensive for corporations to crack, which wastes valuable resources on compliance.
Congress may finally be poised for corporate tax reform in 2013. This primer highlights both the core problems with our corporate tax system and the key questions that lawmakers must address to regain America’s competitive edge.
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