TaxFoundation.org | Scott A. Hodge | Mar. 18, 2008
In March 2008, the Tax Foundation released a summary of the tax rates that US corporations pay. The results are truly eye-opening.
Many states impose state corporate income taxes at rates above the national average of 6.6 percent. Iowa, for example, imposes the highest corporate tax rate of 12 percent, followed by Pennsylvania’s 9.99 percent rate and Minnesota’s 9.8 percent rate. When added to the federal rate, these states tax their businesses at rates far in excess of all other OECD countries.
When compared to other OECD countries:
- 24 U.S. states have a combined corporate tax rate higher than top-ranked Japan.
- 32 states have a combined corporate tax rate higher than third-ranked Germany.
- 46 states have a combined corporate tax rate higher than fourth-ranked Canada.
- All 50 states have a combined corporate tax rate higher than fifth-ranked France.
With the federal plus the states tax rates American businesses are taxed far in excess of all other OECD countries. See below a summary table of the combined federal and state corporate tax rates for the fifty (50) states and the thirty (30) OECD countries:
The Organisation for Economic Co-operation and Development (OECD) is an international organization of thirty (30) countries that accept the principles of representative democracy and free-market economy. (Wikipedia)
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