Sunday, 9 October 2011

Corporate Tax Rates

From the Guardian, here is a link to an interesting article showing how corporate tax rates vary across countries. Among the OECD countries, America (39.2%) and Japan (39.5%) have the highest corporate tax rates. Canada has a 29.5% corporate tax rate. Among the OECD countries, Ireland has the lowest corporate tax rate at just 12.5% but this has not saved Ireland from being one of the PIIGS.

While the high US corporate tax rate looks ominous, the vast tax loop holes in the US tax code make it possible for some companies to pay very little tax.

 The US is one of the only developed countries to not have a national consumption (sales) tax. European countries have a valued added tax (VAT) and here in Canada we have a GST. Herman Cain has recently suggested the the US should adopt his 999 tax plan. A 9% flat tax on income, a 9% flat tax on sales and a 9% flat tax on corporations.

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