U.S. corporate tax rate poised to become highest - News and Current Events | futures.io
futures.io futures trading

Go Back   futures.io

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

U.S. corporate tax rate poised to become highest
Started:March 27th, 2012 (03:32 PM) by kbit Views / Replies:226 / 0
Last Reply:March 27th, 2012 (03:32 PM) Attachments:0

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

U.S. corporate tax rate poised to become highest

Old March 27th, 2012, 03:32 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

U.S. corporate tax rate poised to become highest

On Sunday, the United States gets a distinction no nation wants -- the world's highest corporate tax rate.

Japan, which currently has the highest rate in the world -- a 39.8% rate on business income between national and local taxes -- cuts its rate to 36.8% as of April 1. The U.S. rate stands at 39.2% when both federal and state rates are included.

"The change in and of itself is not that important, but there's some symbolism involved in being the highest in the world," said Eric Toder, co-director of the Tax Policy Center, a non-partisan think tank. "There's certainly been a long-term trend of our rate getting higher relative to everyone else."

But despite the headline number, the statutory rate only tells part of the story.

Loopholes and other special treatment for different kinds of businesses mean that businesses pay an effective rate of only 29.2% of their income, which puts the United States below the average of 31.9% among other major economies, according to analysis by the Treasury Department.

And the Organization for Economic Cooperation and Development, the multinational group that tracks global economic growth, estimates the United States collects less corporate tax relative to the overall economy than almost any other country in the world.

Tax reform: Why it's so hard

Some economists argue that tax collection relative to gross domestic product is the more relevant measure. That's because different accounting rules around the world mean what's counted as income in one country isn't counted in another, making comparisons of tax rates misleading.

Still, both Democrats and Republicans argue that the corporate tax rate should be lowered as a way of promoting greater economic growth, so that multinational companies have incentive to invest more in their U.S. operations than overseas. President Obama has proposed cutting the corporate rate to 28%, Republican challenger Mitt Romney proposes a 25% rate.

Both sides are in agreement for the need to reduce the loopholes and other exemptions that shield companies from paying taxes on all their income. That kind of reform could increase corporate tax collections, or at least leave them unchanged, even with a lower rate.

Obama's tax plan

But reaching agreement on that kind of tax reform has proved to be virtually impossible, especially during an election year.

For example, President Obama wants to impose a minimal tax on the overseas profits of U.S. companies to discourage them from moving operations offshore to tax havens. Romney and the Republicans oppose that proposal.

Romney's tax plans
So the United States is virtually certain to have the title of the world's highest corporate rate, at least until after the presidential election.

U.S. corporate tax rate poised to become highest - Yahoo! Finance

Reply With Quote


futures.io > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > U.S. corporate tax rate poised to become highest

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
The Winners and Losers in Obama's Corporate Tax Plan Quick Summary News and Current Events 0 February 22nd, 2012 07:10 PM
Obama to float corporate tax overhaul Wednesday kbit News and Current Events 1 February 22nd, 2012 02:34 AM
Obama to pitch lower corporate tax kbit News and Current Events 0 February 10th, 2012 07:05 PM
CME Group Commends the State of Illinois' Efforts to Address Corporate Tax Disparity kbit News and Current Events 0 December 19th, 2011 08:14 AM
P&G, Big US Firms Push for Lower Corporate Rate Quick Summary News and Current Events 0 January 20th, 2011 06:00 AM

All times are GMT -4. The time now is 12:27 AM.

Copyright © 2016 by futures.io. All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts

Page generated 2016-10-28 in 0.07 seconds with 19 queries on phoenix via your IP