At a combined state-federal rate of 39%, the United States has the highest statutory rate in the world, according to Robert Atkinson, president of Information Technology and Innovation Foundation. But there is also evidence that the United States has one of the highest effective corporate tax rates in the world, especially for manufacturers.
And higher corporate rates reduce economic growth, including reduced international competitiveness, explains Atkinson.
He suggests that Congress should reduce the statutory rate to something closer to 20%. But rather than eliminate key growth incentives to pay for deep rate reduction, it should preserve and expand them.
Read Atkinson’s proposals for tax reform at IndustryWeek.