We’re #1, we’re #1, we’re #1! In corporate tax rates, but still…
posted at 6:23 am on March 31, 2012 by John Hawkins
If you believe Joe Biden, Barack Obama has had it even tougher than FDR. At first glance, that seems like an unfair comparison since FDR was fighting the Axis while Barack Obama seems to spend most of his time making war on American businesses. However, in Obama’s defense, like FDR he is at least gradually pounding his enemies into submission.
As of Sunday, April first, the United States will have the highest corporate tax rate in the world. This new record is not something that would make most Americans proud.
We take the title as Japan cuts its tax rate by five percent. America’s business tax rate now tops out at 35 percent. Add state taxes and American job creators face a median rate of 39.2 percent.
The United States was in the middle of the pack when we last changed our rates in 1993. Since 2000, however, 30 of the world’s leading developed countries — looking to boost their economies — have cut their rates.
Germany dropped its top rate by 22 points.
Canada cut its by 13 points.
Ours stayed the same.
Today the worldwide average is 25 percent.
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.
…High taxes also leave less money for businesses to expand, innovate and create jobs. The prospect of saving millions of dollars in taxes has caused some U.S. businesses to move overseas, taking their jobs with them.
In contrast, researchers at the Heritage Foundation have calculated that if Washington were to cut our corporate rate to 25 percent, the benefits to Americans would be dramatic. After-tax income for a typical family would rise by almost $2,500. The U.S. economy would create 581,000 jobs a year over the next decade.
It’s like the old slogan you’ve probably seen pinned to a cubicle at work somewhere, “The beatings will continue until morale improves.” Barack Obama has been cranking out the regulations, driving oil prices higher, demonizing successful people, cheering on the Occupy freeloaders, expanding government wildly, promising more tax increases in his second term, and spending so much money that people have genuinely started to fear an economic collapse caused by the government being unable to even pay the interest on its debt in the near future. Meanwhile, Obama seems to be puzzled as to why the economy is continuing to limp along and businesses aren’t hiring. The biggest problem this country has is sitting in
the Oval Office a golf cart somewhere and voting him out of office in November would do more to help the economy and create jobs than any policy the government could implement.
John Hawkins is a professional writer who runs Right Wing News and Linkiest. He’s also the co-owner of the The Looking Spoon. You can hear more from John Hawkins on Facebook, Twitter, Pinterest, G+, You Tube, & at Pajamas Media.